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September 5, 2015

Homework Help: ECONOMICS

Posted by RAJA on Saturday, April 13, 2013 at 10:41pm.

There are two ways to protect your car from theft. The "club" makes it difficult for a car thief to take your car. Lojack makes it easier for the police to catch the car thief who has stolen it. Which of these types of protection conveys a negative externality on other car owners ? Which one conveys a positive externality? Are there any policy implications in your analysis ?

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