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"If the road were privately owned it would not be a prolem ... Would you rather use a carefully signed road or an unsigned one. It's a no brainer" Private ownership per se would not overcome the problem, as privately-owned monopolies are also prone to inefficiency. This may take the form of higher prices or lower quality, including poor signage. Your last sentence, however, implies that you presume that there would be competition between different road owners. However, as most economists will tell you, while competition in most markets is efficient, it is unlikely to be so in the case of the provision of roads, were the problem of a "wasteful duplication of infrastructure" - ie multiple roads going between the same places - would arise.
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