King Rat (gkr) wrote,
King Rat
gkr

Social benefits

So my poll on car security was inspired by this entry on Bruce Schneier's blog. I read the Kristof Op-Ed and thought it was pretty cool, then later saw Schneier's entry. The point is that in many cases people will pick something that is best for them, but not look at the social benefits of other options. It's a flaw in pure unregulated markets. Overall, everyone would be better off with fewer car thieves, and thus less need for car security. But given the choice, most people will opt for maximizing their personal gain.

As the Kristof Op-Ed noted, when LoJack became prevalent in Boston, car theft dropped big time. Cause thieves wouldn't be sure if a car had LoJack or not. Whereas with the Club, car thefts just shifted to those who didn't have them.

The moral is that giving economic incentives to people to nudge them to pick stuff like LoJack over the Club might be a cost effective way to reduce one type of crime.

Tags: economics
Subscribe

  • Last post

    I don't plan to delete my LJ (I paid for permanent status, dammit), but this will be the last post. I don't plan to read it anymore, either…

  • The Fighting Lady

    The first image is a screenshot from The Fighting Lady at 6:55. The subject at that moment is the maintenance and operation of the ship's…

  • Operation Hailstorm

    Last summer my aunt requested the military file for my grandfather. It finally came through last month. I scanned all 600+ pages a couple weeks ago…

  • Post a new comment

    Error

    Anonymous comments are disabled in this journal

    default userpic

    Your reply will be screened

  • 1 comment