Uber, COVID And The Future Of Public-Private Partnerships

This brings up a much broader debate on private and public entities' role in the provision of collective goods (or their substitutes).

Burton Weisbrod, in one of the most seminal papers on this topic , shows that the higher the heterogeneity among customers (both in terms of preferences for quality of service and income), the lower the support for government provision of these goods, and the higher likelihood of an emergence of the private sector substitutes. Given the increased inequality and the significantly more heterogeneous nature of American society, it is not surprising to see these private transportation solutions supplanting the public sector. As researchers predict  (pre-Corona) that car ownership will decline by 80% by 2030, it is not all that surprising that the replacement comes from ride-sharing firms replacing public transportation.

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Harry Goldstein 1 year ago Member's comment

Good article, looking forward to your next one.