Chapter 15 - Public Goods and Public Choice - Exercises - 15.2 Private Goods with External Benefits - Page 353: 2.8b

No one will provide free LoJack

With 20 companies, each insurer only captures 5% of the external benefit from reduced theft. The remaining 95% benefits other insurers. Since the cost of LoJack is $100 and the insurer only recoups a small portion of the benefit, no company has enough incentive to provide free LoJacks. This is a classic free-rider problem.