Remember, free roads are public goods (and toll roads impose high transaction costs).https://twitter.com/bopinion/status/1013892732698456065 …
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Noah Smith Retweeted Bloomberg Opinion
Remember, free roads are public goods (and toll roads impose high transaction costs).https://twitter.com/bopinion/status/1013892732698456065 …
Noah Smith added,
Roads aren't public goods. They are both rivalrous and excludable.
Public roads are not excludable and they're non-rivalrous BUT subject to congestion, obviously. Often.
Not only are public roads excludable, but plenty of people are excluded (those without a license). And of course public roads are rivalrous. Congestion is often caused by demand over-matching supply. Me being on the road can worsen your experience.
Exclusion has costs. It is not free to implement. Also, road network effects and agglomeration effects are not excludable with current technology. So that's wrong. And roads are not rivalrous at 0 congestion levels. Nor are network effects or agglomerations. So that's wrong.
popping in out of curiousity here: what are the costs of exclusion that you're thinking of here
toll-dependent route optimization
and where there are no toll roads...? I thought the main means of exclusion was requiring licenses and car ownership etc
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