Micro 6.1-Free-Rider Problem

Is the free rider problem occurring in your performance final group?

The free rider problem exists when someone incurs a benefit without incurring a cost for it.

Would you pay for asteroid protection?

What are the steps for a market failure given the free rider dilemma? ( 1 example)

1. However, too many OTHER people don't pay for a service.
2. The service isn't purchased.
3. Initially, some people pay for a service, seeing the need.

What are the steps for a market failure given the free rider dilemma? (1 example)

1. Initially, some people pay for a service, seeing the need.
2. However, some OTHER people don't pay for a service.
3. The service is purchased, but free riders enjoy the benefit of the service without having to pay for it.