Free-Rider problem....

Anonymous
timer Asked: Aug 19th, 2014
account_balance_wallet $5

Question Description

Give an example of a free-rider problem.....

Maximum 50 words

Tutor Answer

madhavant
School: University of Maryland

Free rider, in economics, refers to someone who benefits from resources, goods, or services without paying for the cost of the benefit.

In group insurance, the employees get the benefits when they are met with accidents though the premium is paid by the organization.

In a labor union, free riding occurs if an employee pays no union dues or agency shop fees, but benefits from union representation.

Ref:

http://en.wikipedia.org/wiki/Free_rider_problem


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Anonymous
awesome work thanks

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