5. Changes in incentives Suppose the large number of auto accidents in a small town results in new legislation that requires all citizens of the town to install new anti-lock brakes on their cars. These new brakes cut the time it takes a car to stop by 50%, allowing drivers to avoid collisions with other cars and pedestrians more easily. The new brakes the probability that a vehicle will collide with another vehicle but also give drivers an incentive to drive more which could potentially the number of car accidents in the town.

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