Related point:
There have been a lot of studies of privatized garbage collection. At
least many of them find that (controlling for quality?) the total cost
to consumers is highest under government monopoly collection, lower
under competitive supply, but lowest of all under lowest-bidder takes
the whole market contracting.
But if that's so, it's unclear why the lowest-priced firm doesn't take
the whole market in Sellgren's student's example.
--
Prof. Bryan Caplan [EMAIL PROTECTED]
http://www.gmu.edu/departments/economics/bcaplan
"We may be dissatisfied with television for two quite different
reasons: because our set does not work, or because we dislike
the program we are receiving. Similarly, we may be dissatisfied
with ourselves for two quite different reasons: because our body
does not work (bodily illness), or because we dislike our
conduct (mental illness)."
--Thomas Szasz, *The Untamed Tongue*
