Why aren't there more private roads?

[CallMeIshmael]

It seems that nearly 100% of roads in North America are publically owned. Not quite 100%, but a very very high percentage of them.


Beyond that, it doesnt seem that there is any legal barrier to erecting private roads, since they do exist.


Why is this?


Is there some barrier to entry into this market, or is this a (nearish) monopoly?


EDIT: Just to be absolutely certain: 1) Im well aware of te governments acts, and how, since they charge us taxes, that is a barrier to entry, but Im just curious if that isthe only 1 and 2) This isnt meant to be an anti-AC thread in any way. Just a question.

[TomCollins]

Imagine if I gave away hotdogs for free (but paid for them by taxing people). How would anyone compete with this?

[CallMeIshmael]

(not sure if you saw my edit, but I was asking if there was anything beyond that)


Obviously that is the first big reason. But Im not sure its exactly sufficient.


There seem to be many many examples of publically owned roads that charge fairs, yet have little to no competition.

It is simply an issue of subsidy? I mean, there are many examples of subsidized entities that get their fair share of private competition. Is this just an example of a situation where the subsidy is so great to overcome all competition? Or is there a barrier.

[tomdemaine]

I'm pretty sure it's as simple as government spending crowds out private spending. Which, if it weren't so tragic would be a funny counterpoint to the 'but won't one person just buy up all the roads and charge monopoly prices for them' argument. Oh no what if the exact situation we've got right now happened at some point in the future? That'd be awful!

[Phil153]

[ QUOTE ]
Imagine if I gave away hotdogs for free (but paid for them by taxing people). How would anyone compete with this?

[/ QUOTE ]
Make a better hotdog?

[iron81]

Well, a pretty big barrier is the fact that your private road would likely have to cross a government road to be useful. This means you would need permission from the government to build the road. However, this is not insurmountable: railroads get right-of-way permission all the time. I suppose the existence of private freight railroads proves it is possible to out compete government roads.

[CallMeIshmael]

[ QUOTE ]
Well, a pretty big barrier is the fact that your private road would likely have to cross a government road to be useful.

[/ QUOTE ]

Iron,

thats why I started the thread. It seems to me this has the (perhaps) unique property, where you essentially need the permission of the competition to enter the market.

Im not sure if this is a barrier in actuality, but I do find it interesting.

[iron81]

See my edit.

[CallMeIshmael]

[ QUOTE ]
See my edit.

[/ QUOTE ]

It hasnt changed since I first read it.


Are you talking about the train example?

Im not saying the government *wouldnt* allow entry into the market. Im just saying I think its an odd market, in that you need permission before you can supply a useful product.

[MrMon]

Just think about what it takes to build a road and you'll see why they don't exist privately. First, you need it to go between two places that people want to go between. That usually means it has to be some signifigant distance, even if that's just a few miles. Next, you'll need to acquire all that property to build the road. Not 90% of it, 100% of it. You likely won't be able to do that privately, and even if you could, it won't be at prices that make the project economically viable. Government, through the power of emminent domain, can make these things happen, private individuals cannot.

Railroads often build on long existing right of ways, but if they don't exist, can get government to use its power of emminent domain to obtain the right of way. You aren't likely to be able to build any transportation corridor in a non-frontier society in a timely and economic manner without the power of government in some way.