Re: Why aren\'t there more private roads?
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You've neglected that a road has a certain capacity. And the bigger the road, the higher that mainenance price will be.
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No, I did not ignore that, I wrote:
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A natural monopoly is caused by economics of scale. It is typical for products that have a high cost for the first produced unit and low cost for the marginal produced unit.
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I also mentioned that it was more likely if physical features like passing rivers of mountains and rivers were in place. If the added investment cost or maintenance cost caused by additional passings is relatively high, then my whole example collapses.
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