Work From Home Policy
Sunday, November 21st, 2010
Hello, guys plzzz help me? this is my homework economy I do not understand this question ..?
1. There are two ways protect your car against theft. The Club makes it difficult for a car thief to take your car. Lojack helps police catch car thief who was stolen. Which of these types of protection sends a negative externality on other car owners:? Reflecting a positive externality? Do you there are political implications of your analysis? Can anyone sovereignty there?
When a thief sees the "club", they just go to next car instead of stealing yours. Thus, your chances of having your car stolen are decreased and increased risks are placed on other vehicles, a negative externality. With LoJack, the thief does not know what car it a. It can both deter car theft and catch car thieves who there are more than steal cars with Lojack. It is therefore a positive externality, since people without benefit Lojack equipped others have it. For policy implications, it seems like it might be a good idea to encourage Lojack, perhaps with a credit tax or public education campaign.
