|
>> Thus, the threat of entry is nullified. This is just not true, and the proof is all around you.
Are you saying there is never a second doctor's surgery in a small country town? Never a second airport in a large city? Never a second pub at a popular tourist resort? Duplications of infrastructure - all of them, and they market just provides it. And with roads, the opportunity for investment is even greater than with other infrastructures. There is an old joke about the Soviet Union There is only one road: from your place to the factory. One way.** Most countries are not like that. If there is already a road between A and B, and the shortest path from A to C is via B, then someone will build a road directly from A to C. Even if the A-B road owner drops his prices, he still can't compete for the A->C traffic. But he still has to compete for the A->B traffic because there is a new route via C. Take a long hard look at a map, and study the redundancy in the road network. Stop thinking about it from the point of view of a socialist government with a problem (how to provide services) and think about it from the view of a greedy capitalist looking for opportunities.
They are nearly boundless. --------
** At the risk of changing the subject I suggest you do the following: look closely at a road map of Europe and Russia. There are two cities which stand out as having heaps and heaps of roads going into them from lots of different directions - like the center of a spider web. Given that Socialist countries are all about centralized control of every part of economic and social life, and that transport and communications from that central point are critical, what cities do you think they would be? The answer may surprise you. Hold your computer screen up to a mirror for the Answer: "siraP dna wocsoM"
| 
