The Free-Rider Problem

The free-rider problem occurs when individuals benefit from resources, services, or goods without contributing to their cost. This often happens in public goods, like clean air or public parks, where it's hard to exclude anyone from using them. Because people can enjoy these benefits without paying, some may choose not to contribute, leading to underfunding or overuse. Ultimately, this can result in a depletion of these resources, as those who do pay may feel less incentivized to support them, potentially jeopardizing their availability for everyone.