Economic rent, rent-seeking behavior, and the case of privatized incarceration

In the 1900s, the roads across rural America were yet to be tarmacked, but cars had begun to appear on them. This created an opportunity for roadside farmers in remote areas. By plowing up the dirt roads at night, they could turn small stretches into mud. This made the roads impassable the next day for the relatively underpowered cars that were, at the time, the best that money could buy. When cars got stuck, these ‘mud farmers’ were able to offer ‘assistance’ by getting their mules to haul the cars out—for a hefty price. Hapless drivers ended up having to pay something close to the value of their entire car just for the privilege of not having to abandon it