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PRIVATE POLICING AND PRIVATE ROADS: A COASIAN APPROACH TO DRUNK‐DRIVING POLICY
Author(s) -
Benson Bruce L.
Publication year - 2007
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2007.00777.x
Subject(s) - coase theorem , externality , incentive , business , private transport , property rights , private property , transport engineering , public economics , engineering , economics , law , public transport , finance , political science , microeconomics , transaction cost
Alcohol‐related traffic accidents are externalities, not because of drinking, but because of relatively free access to public roads. Access limits are Coasian (property‐rights) policies, but more effective limits will arise if road owners are liable for failing to provide safe roads. This can be achieved by privatising roads, thereby creating strong incentives to employ innovative private traffic policing.