1. As a general rule, cities are non-profit organizations and elected officials hire managers to operate
the various departments which provide services (e.g., trash collection, street repair, etc.). Suppose cities of all sizes across your state/province/region become profit-seeking corporations. They will issue stock, the stock will be traded on a national exchange (e.g., NYSE), they will have a Board of Directors which will appoint all city officials. Any economic agent (i.e., person or organization) with the means may purchase stock if legally permitted. As usual, shareholders will elect members of the Board. Furthermore, the city will no longer be permitted to levy taxes. Assume all stockholders have a share of ownership in the city.
Will the new system increase or decrease incidents of Moral Hazard by city officials/managerscompared to the old system?