[quote=SK in CV][quote=SD Realtor]Sounds like there should be no private entities then because any service industry that has multiple providers is less efficient then a single entity.
Hmmm curious logic.[/quote]
I was specifically talking about residential trash pick-up. And yes, it’s perfect logic. Everyone gets almost identical service, differing only in the number of trash cans. You tell me, which would be more efficient, one provider stopping at every house once a week or 10 different providers driving the exact same route every week, but stopping, on average at every 10th house?[/quote]
Why is weekly pickup at every house the most efficient method of trash disposal. The problem is you are assuming that is the only and most efficient way to remove trash from residences. Maybe having a large bin at the end of the street where each house drops off their trash and then the bin is serviced on demand is a better way to do things. That’s how apartments do trash removal.
There’s obviously some weeks that go by when I didn’t generate a lot of trash and don’t need my trash picked up yet the garbage truck drives by anyways. That’s not necessarily the most efficient way of doing things.
My point is that competitive forces drive efficiency. Obviously companies that figure out more efficient ways of doing thing enjoy a competitive advantage over their competitors. That’s what drives up their profits and lowers cost to consumers.
We often complain about government being inefficient and I think one of the major reasons they are efficient is they don’t have any competition. What drives them to deliver better service for lower cost. Absolutely nothing, other than a shortage of tax revenue, which is usually solved by increasing revenue rather an innovative efficiency improvement.
