> This is a kind of principal/agent problem that the private sector partially manages with equity or deferred compensation
The private sector also has the option (and usually the motivation) to just quietly disappear failed projects.
Wal-Mart buys an automation system for their distribution centre and it's a huge success? Tell the stock market. The system is a complete failure, we remove it and trash it? Uhhhh of course the secrets of our highly efficient warehouses are commercially confidential, couldn't possibly tell the stock market what we did or did not do.
The private sector also has the option (and usually the motivation) to just quietly disappear failed projects.
Wal-Mart buys an automation system for their distribution centre and it's a huge success? Tell the stock market. The system is a complete failure, we remove it and trash it? Uhhhh of course the secrets of our highly efficient warehouses are commercially confidential, couldn't possibly tell the stock market what we did or did not do.