Janet was willing to contribute $30 this year to her local college radio station. However, after learning that the radio station had already met its goal of raising $200,000, she decided not to contribute, because she knew she could listen to it without contributing. This is an example of:

Question

Trey Keith

Business

1 November, 07:35

Janet was willing to contribute $30 this year to her local college radio station. However, after learning that the radio station had already met its goal of raising $200,000, she decided not to contribute, because she knew she could listen to it without contributing. This is an example of:

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Answers (1)

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Conway · Answer 1

Free rider problem

Explanation:

A popular term that describes a situation when those who benefit from resources, or services offered to the community do not pay for them.

The free-rider problem usually occurs with goods or services which are non-restrictive like radio services.

Since Janet does not pay for the radio services and yet benefits from it, she is a free rider.