The free-rider problem is larger for private goods than it is for public goods.

Question

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The free-rider problem is larger for public goods than for private goods. Private goods are exclusive, meaning that once someone has purchased or consumed the good, others cannot consume it. This means that it is easier to exclude free-riders from benefiting from the good. Public goods, on the other hand, are non-exclusionary, meaning that once the good is produced, anyone can consume it, regardless of whether they are contributing to its production. This makes it more difficult to exclude free-riders and ensure that everyone is contributing their fair share.

The Free-Rider Problem Is Larger for Private Goods Than It