Use, Esteem, and Profit in Voluntary Provision: Toll Roads in California, 1850-1902

Abstract:     
In studying the history of toll road companies in California, we see motives of both use-and-esteem and residual returns. Some road companies were initiated as business enterprises, aiming squarely at dividends. For other road companies, use-and-esteem motivations inspired a large number of community members to contribute; this we call community enterprise. Also, there are the cases of use-and-esteem motives inducing a small number of wealthy parties to finance a road, which we call coterie enterprise. In comparison to the earlier toll road movements in the eastern United States, the California toll road experience showed less of the community enterprise model and more of the business enterprise and coterie enterprise models.

Number of Pages in PDF File: 19

Keywords: Toll roads, esteem, profit, voluntary provision, public goods, free riding, infrastructure, California

Accepted Paper Series