Congestion in Delivery of Emergency Services in Urban Areas: The Case of Police Response to Burglar Alarms
Erwin A.
Blackstone, Simon Hakim, and Uriel Spiegel[1]
Congestion in Delivery of
Emergency Services in Urban
Areas: The Case of Police
Response to Burglar Alarms
ABSTRACT
Urban governments and in particular large cities face an increasing
demand for emergency services. These
services have both public and private attributes. If the call for service is real then public
involvement but not necessarily provision is justified. However, in case of a false incident it is a
private good, and the efficient solution involves market provision. Whether the service is indeed public is
unknown until the service is actually delivered. This attribute of this newly defined public
good suggests a public private partnership to deliver the good in a socially
efficient manner. This solution differs
from existing practices.
The emergency service analyzed in this paper is police response to
burglar alarms. Such response comprises
twenty percent of police efforts. Further, 94 to 99 percent of the burglar
alarm calls for service are false. They
are thus essentially a private service.
This paper suggests an initial private response to an activation
followed by police response if an actual burglary is evident. The private response portion in most areas
can be provided competitively.
1. Introduction
Urban
Governments throughout both North America and Western Europe, including in
particular Great Britain, experience congestion on both their 911 systems and
in police response to emergencies.
Government provides most emergency services for equity and/or efficiency
reasons. Society chooses for equity
reasons to make rescue from life threatening situations generally available so
that the poor cannot be denied assistance.
Market prices would often be too high to be afforded by the poor. In the case of ambulance, hospital
emergency, or Coast Guard services the threat is mainly to human life while in
the response to burglar alarms it is invasion of property rights and possibly
violent incidents.1 In the case of fire protection the public
interest lies in preventing the spread of fire, a negative externality that threatens
both lives and property. Government has
usually subsidized these services so prices are below market levels in order to
make the service affordable to all. As a
consequence, individuals may abuse the system and claim they have an emergency
in order to obtain the public service.
This
paper discusses the problem of congestion in 911 emergency services that is
prevalent in large metropolitan areas.
Emergency services often have both private and public attributes. We introduce a new type of public good whose
attributes dictate a mixed delivery by public private partnerships. We show that society’s welfare could be
improved by shifting some production and financing responsibilities to the
private sector where competition for delivery prevails; in some cases
government can effectively compete with private providers.
The
analysis is applied to police response to burglar alarms. Response to false alarms causes congestion on
the 911 lines, reduces police response to real and serious events, imposes cost
on police, and increases the threat of accidents from rapid police response.
The false alarm problem is particularly acute in large cities where the police
are already burdened with much crime and where the absolute number and growth
of alarm ownership yields a large number of false activations. In
To
determine an efficient provision of response to requests for emergency
services, including alarms, requires understanding the nature of the
service. Since government delivers the
service, it is helpful to discuss the theoretical evolvement of public
goods. Samuelson (1954) was first to
identify a “pure” public good. Such a
good may not be produced at all or in non-optimal amount under free market
conditions. However, the good can
provide net social benefits and only government which represents the public
interest would supply the optimal quantity. It is very costly or even
impossible to exclude any one from consuming a public good, and each and every
person consumes the full amount of the output.
Without government forcing all to share the cost, each person would have
a strong motive in becoming a “free rider” or to pay less than the socially
optimum amount. Thus, there is
essentially no alternative but for government to take responsibility for the
supply of public goods. Clearly,
however, government does not need to produce the good and could let that be
done under competitive market conditions.
The
assumptions necessary to classify a good as a pure public good are seldom
completely met in reality. For pure
public goods the size of the interacting group is the entire society, and the
entire supply is commonly consumed. If
either or both the requirements of non-exclusion and non-rivalry fail to be met
then it falls into the general category of an impure public good. These impure public goods incorporate the
notion of congestion cost or excludable benefits. Unlike pure public goods, a larger number of
consumers may cause congestion in the consumption of impure public goods. Examples include swimming pools, tennis
clubs, golf courses, and highways. (Cornes, and Sandler, 1986: 4).
Buchanan
(1965) and Olsen (1965) elaborated on Samuelson’s work by defining a more
narrow type of impure public good that is frequently found in local
communities. In the case of Buchanan’s
Club good, the entire supply is commonly consumed; however, the size of the
interacting group is small. The level of individual benefits decline with the
size of the population and the distance from the source of supply.
Another
“variant” public good that is similar to a Club good is the local public
good. It assumes congestion but does not
incorporate excludability for the population within the jurisdictional
level. Examples include local schools,
public libraries, or public parks. Police
patrol that provides an “umbrella” of security to the community can also be
classified as a local pure public good.
Buchanan’s
and Olsen’s definition of Club good assumes that consumers travel to a defined
geographical area where the service is provided. However, a “variant” local public good can
also be provided at the consumers’ own location as long as the two assumptions
of excludability and congestion are satisfied.
For example, patrol officers educating children at their schools about
the dangers of illegal drugs are still providing a local public good. This is a public responsibility since
significant externalities exist.
Local
governments often provide emergency services because of life threatening
conditions and/or a significant level of externalities. In case of a major disaster, like an
earthquake, emergency services need to be in place in order to serve the
general population. Emergency services
include fire protection, police response to alarms, stray animals, gas odor,
and ambulance services. The Coast Guard,
a federal agency, provides quasi-local services to stranded boaters. These are all local rather than pure public
goods since congestion occurs, and residents in other adjacent localities are
excluded from enjoying the services.
Government provides these services because of their significant
externalities and potential life threatening conditions.
Emergency
services are distinctively different in one important aspect from local and
“variant” public goods. The output of
both local and the “variant” local public goods is a priori certain at a
high probability level. Emergency
services have a common attribute; it is unclear whether a real emergency exists
at the time service is requested and the emergency crew is sent out. Only when the service is actually rendered
does its “emergency” nature become known.
For example, poor people without medical insurance often arrive for
emergency treatment at expensive hospital emergency rooms where service can
normally not be denied even when it turns out to be a non-emergency
situation. Indeed the service is often
delivered before its emergency status is known.
Public ambulances are also often dispatched for what turns out to be
non-emergency events. The case of police
response to burglar alarms is another example.
When police are dispatched it is a priori unclear whether a real
break-in has occurred. Only after the
officers actually provide the service is it known whether an actual break-in is
in progress or has occurred. Hence, in
all these cases of emergency services, the probability of a real event is less
than one. For example, in the case of
police, ex ante response to false alarms will be shown to be a public
good at a probability level of at most 6 percent.
In case
of a real event, public intervention can be justified. However, in case of non-real event, public
financing or intervention is unwarranted.
When a real break-in occurs, the public interest requires that police
attempt to catch the burglar.
Apprehending burglars diminishes the pool of burglars and reduces the
probability that others will become victims of burglary. Apprehension also has a deterring effect by
raising the cost of criminal activity, and thereby may even reduce the future
supply of burglars.
When a
false alarm occurs it is a private good and government intervention is
unjustified. If a water pipe in the home
breaks, it is obviously an emergency; however public intervention is not
warranted. Similarly, when an alarm is
falsely activated, no one else in the community derives any benefit from the
response to the false alarm.
2. The false alarm problem
False
alarms are a significant problem in all emergency services. For example, 53 percent of 911 calls in
We chose
police response to alarms as a case study for all emergency services. Alarm systems are purchased from alarm
dealers. Dealers sign up the alarm owner
for monthly monitoring by a central station.
Large dealers usually have their own central station while smaller
dealers contract out monitoring to central stations that serve customers of
many dealers and enjoy economies of scale.
When an activation occurs, a signal is sent to a central or
monitoring station. The central station
is supposed to verify whether an intrusion or attempted intrusion
occurred. In case of a suspected real
event, the protocol is for the central station to request police response. In most situations two officers respond in
one or two vehicles. More than one
officer is required because of the possibility of a violent confrontation if
the burglar is on site. Further, most
police departments will not accept a central station’s cancellation of the
request for police response once the police have been dispatched.
The
problem is that 94 to 99 percent of all activations are false. For example, DeKalb Georgia police in 2000
found that only 39 out of over 144,000 alarm calls were actual or attempted
burglaries (SDM, January 2001:51). In
Seattle Washington 97.5 percent of 30,000 police responses to alarm were false
and only 40 burglars were actually apprehended.
Chicago Police annually respond to over 300,000 activations, 98 percent
of which are false. The corresponding
figures for
Alarm
ownership increases annually by eight to ten percent, yielding an almost
identical rise in false activations.
Seventy-six percent of false alarms are caused by subscriber error, ten
percent by equipment malfunction, and the remaining fourteen percent by weather
or telephone problems. On the average,
each system activates falsely 1.3 times a year.
The commercial rates are three times the residential rate. Banks, schools, and municipal facilities
falsely activate seven to ten times the residential rate (AIREF, 1999: 10).
The cost of responding to false
activations is substantial. The cost
includes the value of the time spent by one or two officers in one or two
vehicles. Additional cost items
include the time spent by the dispatchers, vehicle costs, and the expected cost
of accidents attributed to the response required under mainly emergency
situations. Indeed, police officers in
The cost
of patrol officers is a partial indication of the significance of the false
alarm problem.
Not
surprisingly, police responding to mainly false burglar alarms apprehend
relatively few burglars. Consequently
the cost per arrested burglar is high.
In
The cost
of false alarms rests on police departments and over time the problem is
becoming more acute since police budgets rise at less than three percent
annually while false alarm response rises by almost ten percent. Hence, police need to divert patrol officers
from security activities that benefit the community, a public good, to serve
alarm owners who falsely activate their systems, which we argue, is a private
service. Furthermore, officers who are
trained to handle crisis situations are expecting to confront a burglar and
instead deal with a non- event.
Table
1
Calculated
Cost of False Alarms
|
CITY |
YEAR |
NUMBER
OF FALSE ACTIVATIONS |
CALCULATED
COST |
TOTAL
COST |
REFERENCE |
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
|
Nationwide |
2000 |
36 m |
$50 |
$1.86+ |
Security
Sales, 2001, Vol. 22 No. 12 P.8. |
|
|
1995 |
147,
074 |
28 |
4.3 m |
Hakim
and Blackstone, 1996 Percent
false 97.4%. |
|
|
1995 |
121,
717 |
24 |
2.9 m |
Hakim
and Blackstone, 1996. |
|
|
1995 |
11,185 |
72 |
0.8 m |
Hakim
and Blackstone, 1996 |
|
Phoenix, Az |
1995 |
47,075 |
73 |
3.4 m |
Hakim
and Blackstone, 1996. |
|
|
1999 |
8,213 |
60 |
0.5 m |
Material
supplied by |
8a
3.
Practices to solve the problem
Police
departments across
Some ordinances have even
deceased fines. No study has been
conducted to evaluate the relative effectiveness of the numerous policies. Such research would lead to a social
cost-benefit calculation for each policy/practice to determine the most
appropriate alarm ordinance.
A common
practice is to increase fines and also to introduce an escalating fine
structure for multiple false alarms during a given time period, typically one
year. Beset with a large number of false
alarms,
Communities
normally allow some free false activations before fines are assessed. The rationale is that alarm owners ought not
to be penalized for equipment malfunctions or user error unless the problem
occurs often.
Some
experimentation with ordinances to reduce the false alarm problem has involved
lowering false alarm fines.
Municipalities
sometimes assess different false alarm fines for residential and commercial
establishments. Commercial
establishments have a higher propensity for false alarms, have usually greater
ability to pay, and are often required by insurance companies to purchase and
operate an alarm system. Commercial
establishments are thus more likely than households to pay fines, even if they
are high, to maintain continued police response.
Some
ordinances are confusing and complicated and make compliance difficult. Confusing ordinances diminish the deterrent
effect for alarm owners and confuse dealers who typically operate in many
localities. For example, in
Registration
of alarm systems is also used by municipalities to reduce the number of false
alarms and to pay the fixed cost of maintaining the alarm unit, usually within
the police department. The normal
practice is for the municipality to charge an annual registration/permit fee of
between $10 and $50 for the privilege of having an alarm system. Southlake, Texas, for example, has an
ordinance that requires annual permits of $10 for residences and $20 for
commercial establishments but permits are not required for residents at least
65 years old (Kern, 2000: 43). Permits
can be revoked or a policy of no response adopted after five false alarms in a
calendar year. Nassau County New York
requires a permit in order to have police response to an alarm (SDM, 2000:
28).
Registration
of alarms involves substantial resources and is often difficult to
achieve. In Redmond, Washington in 2000
only 1200 alarm systems were registered out of an estimated total of 12,000
(SDM, 2000: 28). Registration in
Non-response
to repeat alarm activations is also used to reduce their number.
Non-response
is a serious problem for the industry, since alarm owners will either stop using their systems and consequently stop paying
for monitoring of their systems and/or non owners will be reluctant to purchase
a system. High fines could lead to the
same result.
Education
of consumers and sometimes dealers, is also used to
reduce the number of false alarms. The
rationale is that user error accounts for 76 percent of false alarms and also
that about 20 percent of users account for 80 percent of false alarms.
The
The alarm
industry established two programs to work with police departments to reduce
false alarms. The above
An effort
directed at dealers occurs in
Another
practice that has also been strongly opposed by the industry is requiring calls
for police response to alarm activations to be made on 900 lines.
Finally,
the alarm industry as represented in its Model States Report supports
allowing physical response by police to be cancelled if the central station
learns after dispatching police but before police arrive at the location that
the alarm is indeed false. It further
supports strong enforcement of the alarm ordinances, registration of alarms,
and reasonable and escalating fines. It
encourages suspension of response for non-payment of fines or for exceeding the
maximum number of allowed false alarms, verification of all alarms by central
stations, and education of alarm system owners.
4.
Evaluation of Current practices
The
above practices may produce a reduction in false alarms. For example, not responding to alarms for
repeat activities obviously reduces false alarms. Targeting repeat activators for intensive
education may work short term as well.
However, such programs and policies may reduce the perceived and actual
level of security, since owners may not arm their systems. Such punitive policies may not be socially
efficient; the social cost of reduced security may be greater than the social
benefit of reduced false alarms and the resulting cost of police response.
These policies also may not account for the public good portion of alarm
response, namely, the benefits of apprehending burglars.
The
alarm industry claims that response to false activations is a normal police
function, a public good. In essence, the
industry disputes both the private nature of response to false activations and
the related argument that such public police response is socially inefficient.
The basic problem is that no one except the
police has an inherent interest in solving the problem. The alarm owner on the average falsely
activates her system 1.3 times a year.
Since most communities allow three false activations a year, alarm
owners usually incur no charges.
Alarm
dealers view police response as a gift to their business.
They sell a system, charge
monthly fees for monitoring the alarm system, and when necessary, obtain police
response that is essentially paid for by the general taxpayers. Dealers consider false activations to be an issue
merely between the police and the customers.
There is also little apparent interest by individual dealers to spend
resources to solve their own customers’ and the communal problem. The latter is the regular “free rider”
problem. Individual dealers view their
private cost of reducing their customers’ false activations to be greater than
their private benefit. Thus, dealers and the alarm associations contest police
efforts to cease response, except for non-payment or for repeat
activators. They also object to shifting
responsibility for their customers’ fines to them or to the central
stations. The alarm industry prefers
that police rather than private companies respond because police response
usually makes their product less expensive to customers and thus more
appealing. Increased fines for more
alarm system
owners will also reduce the
purchase of new systems. It is quite
ironic that private industry prefers government intervention in the marketplace
rather than allow new forms of business, companies offering alarm response, to
develop.
Central
stations are supposed to verify that an actual intrusion took place and only
then to dispatch to the police. However,
suppose that a call is verified as false, but a real break-in did indeed occur. In such a case, the central station is liable
for breaching its obligation and is likely to suffer negative publicity with
perhaps sizable liability suits. Indeed,
the central station bears no cost for dispatching police to a false activation
while the cost could be high for not dispatching to a real event. Hence, the central station dispatches the
police even when the probability of a break-in is extremely small. Sometimes the central station determines that
the call was false after the signal was dispatched for police response. Central stations then attempt to cancel
police response. However, police most
often do not accept cancellation after they have been dispatched. Cancellation with its added calls itself adds
substantial cost to the 911 system. For
example,
The alarm
associations with a broader view of the just industry realize that the false
activations will eventually mean deteriorating business for dealers and central
stations. Indeed, the industry has tried
to solve the problem. However, the
associations as part of the industry would like the police to maintain their
free service that benefits their constituents, and in any case the associations
have limited influence on their members to curb false activations.
The
intuitive practice of ceasing response is economically inappropriate. Suppose that a person has a habit of slamming
the garage door and breaking it. As long as the person pays the bill, the
repair company will send technicians to repair the damage. No company will deny response after a certain
number of calls. The more calls, the
better it is for the garage door repair company. In the same vein, there is no reason to deny
response to false activations as long as the violator pays the full cost, where
no one else is made worse off. The
socially efficient solution requires that price reflect the social cost of
response.
There is
also no reason to cease response during peak alarm periods. The charge should simply be higher, reflecting
the straining at capacity. After all,
garage door companies still respond when business is booming as long as the
customer pays the required charge.
Similarly, the police should not decide arbitrarily when to provide
services. The socially efficient
solution requires response at all times as long as social costs are recovered.
Police
often charge higher fees for commercial establishments than for residences, and
they normally exempt municipal facilities from charges. Businesses pay higher fees because their
demand for response to alarms is more inelastic than is the demand by
households. In addition, business owners
are often non-residents so that local politicians view them as a desirable
source of revenue. Since prices are not
cost based, price discrimination is occurring, a practice common under monopoly
conditions and often not socially efficient.
Sometimes
the public good aspect of alarm response is ignored.