NO AI USAGE WHATSOEVER
Public Good Discussion
Free Rider Problem
This section introduces the free rider problem. This essentially says that if we have a good that is non-excludable and non-rivalrous (i.e. a public good), users of that good have incentive to use the good without paying; relying on others to pay for the good to be supplied. For this discussion, your task is to:
- Identify a public good, and describe an example that shows the free rider problem
- Explain how this problem comes about in your example