Search results
Results from the WOW.Com Content Network
Therefore, the free-rider problem, according to most scholars, is expected to be an ongoing public issue. [citation needed] For example, Albert O. Hirschman believed that the free-rider problem is a cyclical one for capitalist economies. Hirschman considers the free-rider problem to be related to the shifting interests of people.
Part of the economic theory of public goods is that they would be under-provided (at a rate lower than the "social optimum") because individuals had no private motive to contribute (the free rider problem). The "public goods game" is designed to test this belief and connected theories of social behaviour.
The free rider problem is a primary issue in collective decision-making. [36] An example is that some firms in a particular industry will choose not to participate in a lobby whose purpose is to affect government policies that could benefit the industry, under the assumption that there are enough participants to result in a favourable outcome ...
Lessig noted that any natural language is anti-rivalrous, because its utility increases with how much it is used by others. [7] Cooper noted that efforts to combat climate change are perversely anti-rivalrous — any country acting as a free rider will benefit from the efforts of others to combat this problem, even while not contributing itself ...
Lohmann claims that Olson's free-rider problem is insufficient to explain these puzzles. Instead, she argues they are due to uncertainty (information asymmetry among actors) when special interest groups evaluate how political actors promote their interests. She states that everyone can be considered a special interest.
The nonexcludability aspect of public goods is where one facet of the collective action problem, known as the free-rider problem, comes into play. For instance, a company could put on a fireworks display and charge an admittance price of $10, but if community members could all view the fireworks display from their homes, most would choose not ...
The forced rider has been cited in various authors' views concerning taxation. Pacifists are required to pay for national defense. [1] [2] [3] [page needed] Environmentalists may be required to pay for public works projects, such as dams, which they feel destroy natural habitats in ways they do not condone. [1]
Tiebout first proposed the model informally as a graduate student in a seminar with Richard Musgrave, who argued that the free rider problem necessarily required a political solution. Later, after obtaining his PhD, Tiebout fully described his hypothesis in a seminal article published in 1956 by the Journal of Political Economy .