Majority voting on whether or not a public good should be produced could lead to a result where a public good whose costs are bigger than the benefits would end up getting approved by the voters.

Question

Quizplus · Accepted Answer

This can occur due to the free-rider problem, where individuals vote for the provision of a public good hoping to benefit without contributing to its cost, leading to an inefficient allocation where the total costs outweigh the total benefits.

Majority Voting on Whether or Not a Public Good Should