In terms of types of buisnesses I have a heirarchy
Private - lots of competition -- Best Option
Government -- No competition -- Not ideal but if no way to create competition it is better than the alternative.
Government lots of competion -- Not ideal - Privatize to allow free market to drive down price
Private - No competition - Worst of all options. Leads to high prices and poor serivce. Only profit incentive exists with no requirement to deliver good service to maintain customer base.
In this case it will always be 1 private company running it we would be better off with the government running it because at least there is a desire to make the public happy rather than just profit motive. Privatization only works if there will be competition. If not the government just handcuffs itself when the future contracts come up as there is siginificant cost in switching from the status quo company.
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