Now consider that this city consists of two-income groups “rich” (R) and “poor” (P) with no
difference in the cost of commuting for these two groups. The rich residents have a very strong
aversion to crime (the effect of aversion to crime dominates the effect of aversion to commuting-distance) while the poor residents are moderately averse to crime (the effect of aversion to
commute-distance dominates the effect of aversion to crime).
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