Theft Policies - Why is policy concerned with theft How is...

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Why is policy concerned with theft? How is theft related to externalities? What are the consequences of theft for equity and efficiency? Externalities Think from perspective of the thief – assuming they are rational the costs of stealing (risk of getting cost) are less than the risks (everything they take). Assume they aren’t spiteful – stealing for own good not to hurt the victim specifically. If theft is bad for society, should have policy to fix it. Negative externalities for the victim Equity: if the thief is more poor. than the victim then equity is actually created. More equitable distribution. Efficiency: doesn’t matter. Or could be less efficient b/c if people know they will be stolen from b/c not enough policy to prevent the theft than people won’t buy it b/c they know it will be stolen. The just one theft is not inefficient but it creates bad incentives for buying things which hurts efficiency in the long run.
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  • Fall '13
  • WEBER
  • Public Good, Market failure, Externality

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