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The Privatization of Roads and Highways - Ludwig von Mises Institute

The Privatization of Roads and Highways - Ludwig von Mises Institute

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60 <strong>The</strong> <strong>Privatization</strong> <strong>of</strong> <strong>Roads</strong> <strong>and</strong> <strong>Highways</strong><br />

sense. If the congestion is caused by great hordes <strong>of</strong> people entering<br />

the traffic flow at the same time, what better way <strong>of</strong> ending it<br />

than by staggering their work hours?<br />

But there are problems with this simple, apparently rational<br />

view. Most restaurants, for example, are busiest during breakfast,<br />

lunch, <strong>and</strong> dinner time, <strong>and</strong> perhaps in some cases, after show<br />

closings, for late-night meals. In other words, restaurants suffer<br />

from congested traffic, a peak load problem, during these times.<br />

But were a restaurant management seriously to propose that its<br />

customers stagger their meal times “in order to reduce <strong>and</strong><br />

spread out the rush hour peaks,” it would be laughed right out<br />

<strong>of</strong> business in a trice. Its competitors would have a field day.<br />

Many bowling alleys are open twenty-four hours a day, but<br />

“suffer” from peaks <strong>of</strong> dem<strong>and</strong> in the late afternoon <strong>and</strong> early<br />

evening, until perhaps 10 p.m. Some have solved this peak load<br />

problem by advertising cut-rate prices during the morning <strong>and</strong><br />

early afternoon hours, in order to smooth out the flow. When<br />

such changes in consumer behavior are an endogenous result <strong>of</strong><br />

price reductions, customer satisfaction can be maintained. But a<br />

mere exhortation to “stagger” travel dem<strong>and</strong>s can be interpreted<br />

only as a callous disregard for the consumer <strong>of</strong> transport services.<br />

<strong>The</strong> proponents <strong>of</strong> staggering have failed to realize that there<br />

are economies involved in tailoring the working hours <strong>of</strong> the<br />

labor force into a common pattern. Cooperation between complementary<br />

labor factors <strong>of</strong> production is enhanced by a common<br />

workday. Exhortations may induce staggering on the part <strong>of</strong><br />

employers <strong>of</strong> labor whose productivity benefits the most from<br />

the common work hours. This result might ensue if these<br />

employers are amongst those who are politically weakest, or who<br />

are more dependent on the good will <strong>of</strong> the governmental<br />

authorities.<br />

In contrast, if a price reduction is <strong>of</strong>fered for <strong>of</strong>f-peak travel,<br />

all employers will be tempted to accede to the wishes <strong>of</strong> their<br />

employees for cheaper travel. <strong>The</strong> ones who actually give in <strong>and</strong><br />

reschedule their work forces will tend to be the ones whose

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