Assume that each day ten thousand children watch Sesame Street on public television and that watching Sesame Street generates a benefit of $100 per child per year. Once a year, public televisions hold a pledge drive asking viewers to make voluntary contributions in order to keep the programming available to everyone. If public television stations collect less than $100 per child during the pledge drive, then this is evidence:

Question

Quizplus · Accepted Answer

The fact that watching Sesame Street generates a benefit of $100 per child per year suggests that individuals are likely to free-ride and not contribute to the pledge drive since they can still receive the benefit even if they don't pay. So, the evidence of collecting less than $100 per child during the pledge drive suggests the existence of free-ridership.

Assume That Each Day Ten Thousand Children Watch Sesame Street