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2 June, 07:48

Which of the following is BEST definition of a free rider

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  1. 2 June, 08:11
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    In the social sciences, the problem of the free-rider is a kind of market failure that occurs when those who are benefiting from resources, public goods (such as streets or public hospitals) or public services do not pay or underpay for them.

    Explanation:

    Free users are a problem because, while they don't pay for the good (either directly through tariffs or tolls or indirectly through taxes), they can still access or use it. As a result, the good can be a by-product, overused or broken down. The problem of free-rider in the social sciences is how to limit free driving and its harmful effects in these situations. The problem of free-rider can arise if property rights are not clearly defined and enforced. The problem of free passengers often arises with non-exclusive goods (which means that non-payers cannot be prevented from getting used to or benefiting from the good), including public goods and tragedies of the community. A free passenger can use a non-excluded property, such as a government-provided road network, without contributing. Another example: When a coastal city builds a lighthouse, ships from many regions and countries benefit, even if they do not contribute to their costs and are, therefore "free" in terms of navigation aid.
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