Roads, Public Goods, and Focal Points
The Answer Is Transaction Costs
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The Cost of Excludability
The Connecticut Turnpike was converted to a free road in 1985. The costs of collecting to pay for the Turnpike were too large, says John Sutter. Now we have an easy pass that makes it very easy and cheap for me to be able to use a toll road - which means cost of excludability has fallen dramatically.
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