Question

How does one prevent free riders or minimize the free rider problem?

Answer 1

The free rider problem is nothing but a market failure that occurs when people take advantage of being able to use a common good without getting to pay for it on the whole. The most important case of free rider problem is thepublic good usage and to reduce the free rider problem, the government gets to enforce as much regulation as possible to deter people from engaging in the practice. In United States, the crime of attempting to evade or defeat tax carries around five years of imprisonment and also a huge fine as well.