On the back of your Public goods handout
• Consider this public problem:
1. If South Tucson has a higher crime rate than
other parts of the city. Why is this so?
• Neighborhoods in South Central Los Angeles
have started hiring private security guards to
patrol their streets and take pictures of crimes
and gang activity. For every $10 they spend it
reduces crime by $5 on average.
2. Would this be a good idea for South Tucson?
3. How might residents us “game theory” to decide
whether or not to pay for the security?
4. How might the free rider problem prevent this?
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