According to a study by economists Ian Ayres and Steven Levitt,the division of the total benefit of the Lojack to its owners and all other car owners is:
A) 100 percent to the car owner with a Lojack,0 percent to other car owners.
B) 75 percent to the car owner with a Lojack,25 percent to other car owners.
C) 50 percent to the car owner with a Lojack,50 percent to other car owners.
D) 10 percent to the car owner with a Lojack,90 percent to other car owners.

Question

Quizplus · Accepted Answer

The study found that the majority of the benefits of Lojack, a vehicle recovery system, accrue to other car owners due to the deterrent effect on car theft, with only a small portion directly benefiting the owner of the Lojack-equipped car.

According to a Study by Economists Ian Ayres and Steven