Private actions to avoid and prevent criminal victimisation and assist public law enforcement are vital inputs into the crime-control process. One form of private action, the business improvement district (BID), appears particularly promising. A BID is a non-profit organisation created by property owners to provide local public goods, usually including public safety. Our analysis of 30 Los Angeles BIDs demonstrates that the social benefits of BID expenditures on security are a large multiple (about 20) of the private expenditures. Crime displacement appears minimal. Crime reduction in the BID areas has been accompanied by a reduction in arrests, suggesting further savings. Given the vital role of private individuals and firms in determining the effectiveness of the criminal justice system, and the quality and availability of criminal opportunities, private actions arguably deserve a more central role in the analysis of crime and crime prevention policy. 1 But the leading scholarly commentaries on the crime drop during the 1990s have largely ignored the role of the private sector (Blumstein and Wallman, 2000; Levitt, 2004; Zimring, 2007). The potentially relevant trends include: growing reporting rates; the growing sophistication and use of alarms; monitoring equipment and locks; the considerable increase in the employment of private security guards; and the decline in the use of cash (Cook and MacDonald, 2010). Private actions can be encouraged or discouraged through regulation of the insurance industry, reducing the costs of private co-operation with police and courts, gun control measures, and other means. The justification for such measures is the reasonable presumption that many sorts of private action to avoid, mitigate and respond to crime generate substantial externalities. Business improvement districts (BIDs) are a particularly promising institution for harnessing private action to cost-effective crime control. A BID is a non-profit organisation created by neighbourhood property owners to provide local public goods, including public safety. The organisation has the power to tax all the owners in the district, including those who did not sign the original petition. Previous evaluations of BIDs in Los Angeles (LA) indicate that they are successful in reducing crime rates (Brooks, 2008; MacDonald et al., 2009). We provide a further analysis of the costs and benefits, including the effect on arrests and spillovers, and we estimate a dose‐response