market model of prisons

penology and economics

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July 17, 2026

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The market model of prisons views prisons as a service that can be provided by the private sector. This approach emerged as governments faced increasing prison populations and sought solutions to overcrowding and other issues. In this model, private companies can be contracted to build, manage, or provide services within prisons.12

This privatization shifts costs from short-term government expenditure to long-term revenue expenditure for the public. Penology, the study of punishment and rehabilitation, is also a factor, with modern approaches focusing on treatment and reform alongside punishment. The debate around private prisons involves considerations of cost-effectiveness, efficiency, and the ethical implications of profiting from incarceration.132

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prison
Privatization
…is the concept of the market model of prisons. As a consequence of this model, many of the costs of increased imprisonment are hidden in the short term. In fiscal terms, high capital expenditure is converted into long-term revenue expenditure, which reduces current (short-term) financial costs while increasing future (long-term)…
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…is the concept of the market model of prisons. As a consequence of this model, many of the costs of increased imprisonment are hidden in the short term. In fiscal terms, high capital expenditure is converted into long-term revenue expenditure, which reduces current (short-term) financial costs while increasing future (long-term)…
Read More