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> How do you establish at- fault behavior on unmarked roads?

I was not advocating unmarked roads. The article does, but I don't. Being able to establish fault is another aspect of the road markings being Schelling points--everybody knows that if they jump the line they're at fault.

> If there are no markings, and I'm supposed to just "do the right thing", then by definition I can not be at fault

The above notwithstanding, I don't think this is correct. It's not impossible to assign fault without road markings; it's just a lot more difficult, and the assignment is a lot more likely to cause conflict between the parties.

> there is a solution to this: universal, publicly funded ( via use taxes ) auto insurance.

I don't understand how this solves the problem. If anything, it seems to me it would reduce drivers' incentives to correctly judge risk.

> I suppose another alternative would be to re-establish private toll roads.

This would help with the incentives of the traffic engineer, yes. I'm not sure how it would help with the incentives of the driver.

Also, the problem with any privatized road system is that competition in roads is difficult; roads are not commodities. Good road rights of way are determined by geography, not the market. This is one of those cases where even if an optimal solution exists, it's not one that can be reached in the absence of an omnipotent divine being.



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