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Make a model in which (i) people use government-supplied policing, G, and private security spending as substitutes for crime ghting, and (ii) if W is

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Make a model in which (i) people use government-supplied policing, G, and private security spending as substitutes for crime ghting, and (ii) if W is a person's total yearly requirement of money, he can choose to keep only a fraction 0'. of this W with him. This will entail n = 1/05 trips to the bank. Assume each trip to the bank gives him a constant disutility of (:1. After setting up the model, can you say something about the conditions under which a rise in G (i) reduces private security spending, and (ii) reduces or

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