Business, 17.06.2020 17:57 baltazmapa629n

Consider two ways to protect your car from theft. The Club is a conspicuous steering wheel lock that makes it difficult for a thief to take a car. Lojack is a secret tracking system that makes it easier for police to catch a thief who steals a car on which it is installed. If a car thief encounters a car with the Club and a car without it, the car with the Club imposes aexternality on the car without the Club. A policy implication of this result is athose who use the Club.
If a car thief encounters two cars without the Club, but the car thief fears a Lojack system might be installed in one of the cars, the car with the Lojack system imposes aexternality on the other car. A policy implication of this result is athose who use the Lojack technology.

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Consider two ways to protect your car from theft. The Club is a conspicuous steering wheel lock that...

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