Question

Your economics professor assigns a group project for the course. Describe the free-rider problem that can lead to a suboptimal outcome for your group. To combat this problem, the instructor asks you to evaluate the contribution of your peers in a confidential report. Will this evaluation have the desired effects?

Answer 1

In a group project, the free-rider problem can occur when each member of the group is awarded the same grade, irrespective of their contribution to the project.

This implies that most students will not work hard at all, and the entire burden of hard work will fall on one or a selected few students.

The contribution of each member should be equal if the grades are also equal. If this doesn't happen, the grades are unfair.

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One remedy for this is for the professor to individually check the contribution of each member. This can be done by a viva or a demonstration of some kind.

Now, suppose that the professor asks each student to write a confidential report about the other students' contribution.

It is still highly likely that each student will lie about his or her own contribution, and also understate the contribution of others. The free-rider problem may not be completely solved here. Students may also pre-decide with each other about what to write.

However, the confidential report will also reveal useful information about the group. It may give some insight into the students who have colluded and are giving a similar response. It may also create a sense of fear in the free-riders, who would have otherwise made no contributions.