This idea (maybe more of an opportunity) was driven by Messer. Ayrel & Nalebuff’s article "Stop, Thief!" in Forbes, January 10, 2005.

I’m hoping someone can develop a Lo-erJact....as in lower priced. At $700 the LoJack represents over 10% of the average value of a stolen vehicle* while less than 1% of cars are stolen. When I look out over my fleet of vehicles (I’m kidding), being somewhat rational (now I’m exaggerating), I opt to gamble and decide against a $700 investment – statistically I win (the 10% spread over 10 yrs is > % of cars stolen, therefore I pass on $700 investment). Of course someone of unlimited means like Berry Nalebuff can easily justify a LoJacks for his Maybach, Rolls and Bentley.

A Lo-erJack priced at the $75-90 range would certainly change the economics for both the car owner and ultimately, the thief. From a technological standpoint, (not being skilled in this area...or many areas for that matter!) it would seem simple to fuse a 2-way pager and GPS locater together at a fraction of the $700. Any ideas what piece of the LoJack technology is so expensive?

Until then, I’ll add a “CAT” (combat auto theft) sticker to my car...right next to my fake LoJack sticker (a negative externality-sorry neighbors).

A lower priced locating devise would all but eliminate auto theft and could be expanded to many other items (people) subject to kleptomania.

*http://www.iii.org/media/hottopics/insurance/test4/?table_sort_735935=3The average value of motor vehicles reported stolen in 2003 was $6,797

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