The free-rider problem occurs because
A)people who pay for information use it freely.
B)people who do not pay for information use it.
C)information can never be sold at any price.
D)it is never profitable to produce information.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when people who do not pay for a service or product still benefit from it, thus reducing the incentives for others to pay for its production. This can happen with information as well, where people can access information without paying for it, reducing the incentives for its creators to produce it.

The Free-Rider Problem Occurs Because