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THE VOLUNTARY PROVISION OF PUBLIC GOODS? THE TURNPIKE COMPANIES OF EARLY AMERICA
Author(s) -
KLEIN DANIEL B.
Publication year - 1990
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1990.tb00832.x
Subject(s) - public good , purchasing , stock (firearms) , economics , turnover , business , finance , marketing , microeconomics , engineering , management , mechanical engineering
The turnpike companies of early America (roughly 1795–1840) were very unprofitable but conferred vast benefits to communities served. Purchasing stock was like paying for the road since such purchases were necessary to complete the road and unprofitability was foreseen. Thus the turnpikes would appear to have been public goods. Yet hundreds of turnpikes were provided through voluntary association. The free rider problem was overcome by an almost vigilant impulse to participate and to see that your neighbor did likewise.