Re: Why aren\'t there more private roads?
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So the investment manager at the 2nd company, concludes that all the investment will be lost if they build a second road.
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Then disney figures out they can build their own road, let their customers use it for free, and nobody uses road A, disney gets a bunch of happy customers.
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If the buyers can easily cooperate them between, then this happens. But cooperation has transaction costs. In this case Disney has a way to keep that cost low, but that case does not always exist. You can't keep mentioning conditions that only apply to a situation where there isn't a natural monopoly as that isn't what we are discussing.
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