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Infrastructure, Privatization, and Autonomous Vehicles with Clifford Winston

Economics Detective Radio

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How Does Privatization Affect Incentives?

A big part of the pattern here is that some cost that people, private actors impose are not properly captured. That leads them to impose more of those costs than they optimally should or then they would if they were facing the proper incentives. So how does privatization, how would it affect these kinds of incentives? Well, this is not an easy question because we really have little experience with this.

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