The free-rider problem
i.means that people can consume a good without paying for it.
ii.means that people pay too much for a good in order to consume it.
iii.applies to a public good.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when individuals can benefit from a good without paying for it, which is common with public goods that are non-excludable and non-rivalrous, meaning people cannot be effectively excluded from use and one person's use does not reduce availability to others.

The Free-Rider Problem I.means That People Can Consume a Good Without Paying for Without