Your neighbor Gabriella plays loud music that irritates you and the rest of her neighbors.She agrees to turn down the music by 5 decibels for every $25 she receives from her neighbors,and even though you and your neighbors collectively value reductions of 5 decibels at more than $25 per person,no one pays.This is an example of:

Question

Quizplus · Accepted Answer

This is the free rider problem, as everyone wants the benefit of reduced noise but no one wants to pay for it themselves. Gabriella's offer shows that there is a value to the reduction in noise, but the neighbors are not willing to collectively pay for it.

Your Neighbor Gabriella Plays Loud Music That Irritates You and the Rest