The primary benefit of investing ahead of demand is creating a first mover advantage in a new industry. Though there is a substantial risk …show more content…
In the worst case scenario, developing the railroads could be massively more expensive than projected as a result of landscaping and engineering costs. If these costs were passed onto consumers, then demand may not grow due to overpricing compared to alternative shipping services. In the best case scenario, the railroad’s cost of shipping and shipping time may outdo previous forms of transportation, meanwhile reaching new territories as westward expansion was occurring. As an investor, appealing to new territories and forming transportation to bridge regions spanning the east and west would likely be the most attractive aspects. Building transportation in new territories would serve as an untapped, and worthwhile market where demand could be