Prof. Bryan Caplan

Econ 370


HW#6 (will not be graded)


I.                     Answer all of the three Questions for each of the three Products.



1.      NJ Turnpike

2.      Dulles airport

3.      George Mason University




1.      Discuss a possible method of (strongly) privatizing the product. (2-3 sentences)

2.      What efficient improvements would probably come from privatization?  Can you think of any possible inefficiencies that would result from privatization? (3-5 sentences)

3.      Can you think of any manner of making the privatization scheme more politically feasible?  (Hint: How could you "buy off" interested parties who will otherwise resist privatization?)



II.                   In class we discussed several arguments against privatization the defense services industry.  Pick one of these arguments (or offer an original one of your own).  In 1 page, do the following:


1.      Explain the argument in your own words.  

2.      Explain how you think an advocate of defense service privatization would respond.

3.      Which sides do you think wins this particular argument?  Why?