OCR A2 Economics Private VS Private Transport

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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

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