OCR A2 Economics Private VS Private Transport

There is a big debate regarding the extent to which the private sector or public sector should control/provide transport

Private Sector

• Businesses trying to make profit
• Analyse private costs and benefits
• Ignore externalities 
• Potential source of market failure
• However the private sector is efficient
• Quickest to respond to customer needs
• Easiest to raise funds
• Gets subsidies

Public Sector

• Motive of public service 
• Not for profit
• Benefit of the people
• …