Respuesta :

The situation in which individuals are tempted not to contribute to a cause because they will get the benefits even if they do not participate is called the free-rider problem.

What is the the free rider problem?

  • Economics has a problem with the free rider phenomenon. It is seen as an illustration of a market failure.
  • In other words, when some people are permitted to use more than their fair share of a shared resource or pay less than their fair part of the costs, there is an inefficient distribution of products or services.
  • Free riding hinders traditional free-market techniques of producing and consuming goods and services.

Give an example of the free-rider problem.

  • Overconsumption of common resources is another situation that is thought to result in a free-rider dilemma.
  • The Tragic Commons is another name for this.
  • For instance, a fisherman may take advantage of other fishermen who are more interested in protecting sustainable fish stocks by riding on their large catch.

Learn more about free-rider problem here:

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