When public goods are funded through advertising, the problems of both free and forced riders can be mitigated.

Question

Quizplus · Accepted Answer

When public goods are funded through advertising, the cost of providing the good is spread across all people who are exposed to the advertising, regardless of whether they directly benefit from the public good or not. This helps to mitigate the problem of free riders who would not contribute to the funding of the good but still enjoy its benefits. Additionally, if the advertising is persuasive and creates a desire for the public good, more people may willingly contribute to its funding, reducing the problem of forced riders who are required to pay for a good they may not want or need.

When Public Goods Are Funded Through Advertising, the Problems of Both