Nine out of ten transportation projects cost more than projected. There is a new scientific explanation for this: Lying.
Wendell Cox writes in the European TechCentral: "There is a very simple incentive for large contractors to lie. It is profitable. The reward is more money. And, there is an incentive for public officials to believe the lie. The 'Edifice Complex,' which drives so many elected officials to build virtual monuments and to seek "legacy" is served by underestimating costs, since less costly projects are simpler to sell to governing bodies and the electorate than more costly projects."
Thanks to Chris Steins
Read the full story: Liar, Liar
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City of Rosemead
Rutgers University, Edward J. Bloustein School of Planning and Public Policy
One Hundred Miles
University of Michigan School for Environment and Sustainability (SEAS)
Hunter College, City University of New York (CUNY)
The Architects Foundation
City of Cambridge
Montrose County
The Pocatello Development Authority