Question

The concept of the "free rider" is described in your text as someone who lets others pay for a good and then "free rides" on the purchases of others. How does tie in with the idea of public goods? Have you even been a "free rider" yourself? Please explain.

Answer 1

Answer - In the case of public goods , there is problem of free rider which leads to the inefficiency and market failure in public goods market. This is because , the user of the public goods does not have to pay for its use or he had to pay a very little amount as compared to the utility he gets from the use of public good. This leads to the overuse of the public good. Hence the idea of free rider is stuck with the public good.

Playing of football in a small society park made by municipality and destroying the Flowering plants by playing football is the free rider problem leading to the loss of the resource due to overuse. Yes , this act was done by me and my friends while we played during our vacations. There was no entry ticket in park.