Posts Tagged ‘freerider’

Which of the following scenarios demonstrates the concept of the free-rider problem?

Thursday, April 15th, 2010

A. Public radio is funded through private donations. However, everyone can listen to it, whether or not they have donated.

B. A toll bridge requires that every car crossing the bridge pay a toll.

C. A school fundraiser raffles off a free trip to Hawaii. Anyone can buy raffle tickets, but there is only one winner.

D. The local gym offers dance lessons at a very low cost during the weekend.


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