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

Problem:

Since this is a group project, all the members in the group may not contribute equally. It means few members in the group give their 100% in the project and all the other members, although not giving 100%, are taking credit because of staying in the group. If the project is successful, this is free-rider problem. It leads to suboptimal outcome, since the project could have been more successful if all the members give their 100% and contribute equally.

Confidential report:

Such report is definitely helpful. All the members in a group may not have equal caliber and quality – some may have knowledge in operating system whereas some others have ability in picturization. Accumulation of all these create a project successful. The group leader should evaluate individual performances – who does what. It helps to understand individual contribution which may turns into betterment. In this way the free-riding issue could be resolved.