Hart, Shleifer, and Vishny (HSV) Argue That Private Prisons Have

question 14

Essay

Hart, Shleifer, and Vishny (HSV) argue that private prisons have strong incentives to cut costs at the expense of quality, therefore public prisons are better than private prisons. Is there a problem with HSV's argument? If so, explain.

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Definitions:

Overuse

Utilizing a resource to such an extent that it leads to its significant depletion or damage.

Groundwater

Water held underground in the soil or in pores and crevices in rock, which is an important source of drinking water.

Subsidence

The gradual caving in or sinking of an area of land.

Large Dams

Massive structures built across rivers or other bodies of water to control water flow, supply water for irrigation, and generate hydroelectric power.