Description

Paper instructions:
The topic for this unit’s collaborative response assignment is autonomous vehicles. The technology enabling driverless cars is already a reality, and many companies are promising to bring this technology to consumer markets in the near future. Currently there are pilot programs testing autonomous vehicles on public roads in several cities. If these pilot programs are successful, autonomous vehicles could drastically alter markets for both personal and cargo transportation. The looming possibility of widespread use of autonomous vehicles has raised many difficult questions about the regulation of this technology. For this assignment I want you to consider four different possible reasons for government intervention in the autonomous vehicle market.

1) Safety and liability concerns

2) Positive externalities

3) Negative externalities

4) Increasing returns to scale with respect to technology development and implementation

For each of the categories above you should:

a) Describe how it could affect the market for autonomous vehicles. Your description should provide at least one specific example within the category.

b) Describe how you believe public policies should address these effects. You may decide that the government should not intervene, if so, you should explain why you believe unregulated free markets would be better. If you recommend intervention, you should explain why that intervention will produce a preferable result over unregulated free markets.

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