Proponents of privatization cite the advantages of cost control through competition and an institutional setting that provides superior motivation to discover cheaper and better ways to deliver value. However, the extent to which innovation and efficiency improvement are possible in corrections, the measurement and guarantee of quality of service, and decisions regarding who determines the appropriate level of demand for service are all sources of concern. Evaluation and accountability are other issues. Further concerns are that information about the cost of incarceration will be obscured, that contractors will be financially tempted to increase inmate populations be refusing parole, and that private providers will try to manipulate public opinion and influence elected officials. Finally, a comparison of the movement to privatize with the earlier movement to deinstitutionalize also aids the understanding of several theoretical issues related to privatization. 48 references