Offering contributors private goods such as coffee mugs, books, or magazine subscriptions will ________ the free-rider problem and lead to a ________ level of contribution to the public good.

Question

Quizplus · Accepted Answer

Offering private goods as incentives for contributions to a public good reduces the free-rider problem because it encourages individuals to contribute in order to receive the private good. This leads to a larger level of contribution to the public good.

Offering Contributors Private Goods Such as Coffee Mugs, Books, or Magazine