Driving along America’s interstates, you’ll notice that few rest areas have commercial businesses.

Vending machines are the only reliable source of food or drink, much to the annoyance of the weary traveler looking for a hot meal. Thank the National Association of Truck Stop Operators (NATSO), who consistently lobby the U.S. government to deny commercialization. They argue:

Interchange businesses cannot compete with commercialized rest areas, which are conveniently located on the highway rightof-way. . . Rest area commercialization results in an unfair competitive environment for privately-operated interchange businesses and will ultimately destroy a successful economic business model that has proven beneficial for both consumers and businesses.  pg58

a. How does NATSO make travel more expensive for consumers?

b. Do you think most Americans have heard of NATSO and the legislation to commercialize rest stops? How does your answer illustrate rational ignorance? Do you think that the owners of interchange businesses (i.e., restaurants, gas stations, and other businesses located near but not on highways) have heard of NATSO?

c. Why does NATSO often succeed in its lobbying efforts despite your answer to part a?
Hint: What is the concentrated benefit in this story? What is the diffused cost?