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"Wasteful duplication" is an emotive term. Why isn't a dual highway wasteful duplication? How would something possibly be built in duplicate be wasteful under a price system, given the builder must keep in mind to maximise use to be profitable? You are assuming that more emissions are bad. Can you know the beenfits in having more raods? Can you be sure that quicker roads with less congestion and faster speeds won't lead to less emissions? On a large enough scale, many industries becomes at average and marginal costs, constant. Why are roads decreasing in cost? I would think if privately owned, the same pattern would emerge. As for road signage - the insurance industry usurped postcodes, why not let BMW and Ford take over in road information - as GPS already has started to? "No, all it means is that roads built privately would be (or would tend towards being) constructed and run in a way that is privately optimal; not socially optimal." You've assumed an net negative externality for no reason. labelling something as duplication is static analysis as well. What about opportunites arising from it?
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