cherdanno, on Apr 20 2010, 04:57 PM, said:
I agree with this. He just has to work harder on his mechanism to overcome the free-rider problem.
Perhaps something like this. The town being visited has a vote on a referendum. If the referendum passes, then there is a special 0.25% city sales tax levied over the next X months to cover the amount of the funds being raised. Of course you also get to choose the majority needed to pass the referendum (simple majority, 2/3 vote, etc.). In return, the president is not allowed to disrupt the streets and traffic.
In addition, one cost we expect the city to incur is the lost of sales tax due to decreased economic activity while people are stuck in traffic.
I'm sure this mechanism carries its own distortions and doesn't capture the losses of all those affected by the motorcade, but you are going to face similar problems finding the right people to ask to donate as well.

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