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InfrastructureThe Social Value of Shared Resources$
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Brett M. Frischmann

Print publication date: 2012

Print ISBN-13: 9780199895656

Published to Oxford Scholarship Online: May 2012

DOI: 10.1093/acprof:oso/9780199895656.001.0001

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Supply-Side Incentives

Supply-Side Incentives

Chapter:
(p.159) 8 Supply-Side Incentives
Source:
Infrastructure
Author(s):

Brett M. Frischmann

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199895656.003.0009

This chapter considers the relationship between nondiscrimination rules and supply-side incentives to invest in infrastructure. It frames and evaluates the oft-made claim that government-imposed commons management will significantly impair incentives to invest in infrastructure. First, it briefly discusses typical assumptions underlying this claim. Unfortunately, tragedy is often assumed rather than demonstrated. A few of the powerful rhetorical devices/analytical heuristics that influence modern debates about nondiscrimination rules are addressed. Next, the chapter considers a series of issues that require context-specific attention in order to evaluate the relationship between commons management and incentives to invest. It ends with two examples of situations where a conflict between commons management and supply-side incentives arises.

Keywords:   nondiscrimination rules, investment incentives, infrastructure investment, commons management

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