Problem

There are two ways to protect your car from theft. The Club makes it difficult for a car...

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 conveys a positive externality? Do you think there are any policy implications of your analysis?

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Solutions For Problems in Chapter 10