The main issues debated have been the possibilities for improving the technical and economic efficiency of incarceration, the impacts of efficiency gains on taxpayers, and the possibility that private firms would exert influence over public decisions about corrections. The two main advantages offered by profit-seeking organizations are cost-consciousness and an aptitude for innovation. However, these advantages do not fully match the needs of incarceration. In addition, structural barriers exist to genuine competition for prison management contracts. Moreover, little scope exists for technical progress in cutting costs. Furthermore, reduced costs are unlikely to reduce government budgets for corrections. Government contracts with prison corporations are also unlikely to protect fully either the interests of the public or the prison inmates. Tables and 89 reference notes. (Author summary modified)