Critics of privatization argue that privatization encourages providers to lobby for industry expansion. I argue that … expenditures, some initial amount of privatization always decreases industry-expanding advocacy. The extent of privatization for … the extent of collusion. Under relaxed assumptions, the effect of privatization on industry-expanding advocacy is …

would reduce agency costs by forcing firms to allocate more control to shareholders. Such proposals disregard the costs that … shareholders avoid by delegating control to managers and voluntarily restricting their own control rights. This Essay introduces … when investors exercise control, and agent costs, produced when managers exercise control. Both principal costs and agent …