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Assume that Timmy lives in the rough east side of Oakland. Here it is quite comm

ID: 1180661 • Letter: A

Question

Assume that Timmy lives in the rough east side of Oakland. Here it is quite common for graffiti to show up everywhere. People's cars and sides of houses get "tagged" or have graffiti written on them. The neighborhood Timmy lives in is fed up with the graffiti. One suggestion is to have a voluntary community fund to pay for extra police patrols in the neighborhood to ward off graffiti. There are 1000 people in Timmy's neighborhood and each is recommended to contribute $10 a month. Timmy's car got "tagged" recently, so he could benefit. Timmy has decided to take a free rider approach. Given his thinking, how much will Timmy contribute to the pool?


So what I did is 10*1000 = 10,000

and it was wrong.. :( Please help, im so confused

Explanation / Answer

Free rider approach is that if one evades to pay the money, still he will be protected from increased police patrol as every other guy in the neigborhood pays 10$,

so as timmy took free rider approach, he pays nothing. He pays 0$

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