The types of protection conveys a negative externality

Reference no: EM13196261

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 ?

Reference no: EM13196261

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