If a pure public good is provided by voluntary contributions, economic theory predicts that in general too little will be supplied.

Question

Quizplus · Accepted Answer

This is known as the free-rider problem. Because people can benefit from a public good without contributing, they have an incentive to free-ride and not contribute. As a result, the amount supplied will generally fall short of the socially optimal level.

If a Pure Public Good Is Provided by Voluntary Contributions