Public utilities can also face perverse incentives, and be run poorly.
Commercial enterprises at least can face some competition! But with infrastructure like last-mile gas pipelines, it's tricky, and the companies end up being local monopolies. Hence the trouble: a monopoly has very different incentives than a company actually competing on the market.
Commercial enterprises at least can face some competition! But with infrastructure like last-mile gas pipelines, it's tricky, and the companies end up being local monopolies. Hence the trouble: a monopoly has very different incentives than a company actually competing on the market.