Question

What is the best way to deal with “Free Riders?” Comment on at least two areas...

What is the best way to deal with “Free Riders?” Comment on at least two areas where Free Riders are a problem.

Homework Answers

Answer #1

Some ways to deal with free riders:

  • Property rights must be clearly defined and imposed.
  • Must impose external cost for example for the ecosystem services.
  • Taxations.
  • Presentation of environmental degradation by proper government regulations.
  • Taxations.
  • Linking public goods to desirable private goods.
  • Voluntary payment for public goods and services

Two areas where free rider's is a problem are:

  • They are common in shared resource systems were all the users deplete and spoil the resources through their actions
  • Free riders in markets have become very common as the markets have dropped productivity of public goods because of the free ridersr attempts to use the public goods without paying for the them.

Hope this was helpful!

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