The Privatization of Roads and Highways - Ludwig von Mises Institute

Congestion and Road Pricing 95
prices, we know that the customer places a higher value on the
trip than the money he must pay in order to buy it. But with free
fares, a person will not hesitate to use the service even for the
most superficial and frivolous of reasons. People may use transportation
just in order to get out of, and stay out of, the rain; for
the purpose of having a place to stay; or for loitering. A group of
derelicts could tie up transit service by utilizing it at peak-hour
times. And if the fare were free only at off-peak times, this would
seriously cut into the savings made by obviating the need for collection
costs.
We must conclude this discussion of the free fare with the
caveat that our rejection of the case in favor of this policy is only
applicable to public, mass transportation. As far as private, mass
transportation is concerned, the question is a completely open
one. Notwithstanding the powerful arguments leveled against
free public fares, 77 a private entrepreneur may well decide, as
part of his profit-oriented plans, to give transit away “free” as
part of a package deal. This is commonly done in department
stores and office buildings, at least as far as internal transportation
(elevators, escalators) are concerned. And amusement parks
sometimes offer free train rides within their own premises. Given
private ownership of all means of transportation, it is impossible
to rule out all such behavior.
77 Note also that in rejecting free fares, one need not embrace the seeming
alternative, paid public fares. And that is because there is still a third alternative:
the abolition of public transit.