Question

Which of these situations would give rise to the free-rider problem?

• studying for a test 

• National Public Radio 

• a recycling program 

• group work in college 

• a bank providing a "free" checking account 

• bike-share programs 

Answer 1

Studying for returns to the person who is making the effort to study. There is no benefit possible to the third party. Thus, there is no free rider problem.

National Public Radio which is operated by the government benefits the citizen of the country without paying for it. This is a problem of free ride

A recycling program benefits the environment and thus affects the citizens positively. Thus, citizens mostly free rides on the municipality or the government for this benefit. This refers to the free ride problem.

Students in the group who work in colleges often free ride on the most intelligent person in the group. This problem refers to the free rider problem.

Bank provides the free checking account only to its customers. It either facilitates the customer or the bank. No third party can be benefited by this service. Thus, there is no free rider problem.

Bike share program helps the citizens. It is not a free ride as people have to pay to facilitate these services.