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Expert Lu
Expert Lu, Business Consultant
Category: Business
Satisfied Customers: 124
Experience:  ACCA Diploma
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What is the free rider problem as I am really confused with

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What is the free rider problem as I am really confused with this?

Hello , I am an expert with Just Answer and I am pleased to assist you. For me to assist you please explain exactly what you need help on . Thank you in advance.

Customer: replied 2 months ago.
I am currently studying business and confused what the free rider problem is?
Customer: replied 2 months ago.
how this is market failure?
Customer: replied 2 months ago.

Thank you for your patience, I am currently responding to you still drafting,sorry

Customer: replied 2 months ago.
No problem!

A free rider is a person who benefits from something without expending effort or paying for it. The free rider problem is an issue in economics. It is considered an example of a market failure. That is, it is an inefficient distribution of goods or services that occurs when some individuals are allowed to consume more than their fair share of the shared resource or pay less than their fair share of the costs .Markets often have a difficult time producing public goods because free riders attempt to use the public good without paying for it, I hope you can understand from this context. Best wishes.

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Customer: replied 2 months ago.
ok thank you! This is very helpful

I am Glad i could help if you have any other questions in the future you can FAO Lucy and i will pick them up for you. All the best. Before you leave JA site please kindly rate my services .Good luck