Question

How overcome free rider issue for national defence?

Answer 1

Free rider issue arises when all those who are benefited from the service are not paying for the service. So, it means that the burden of the service is falling on some people of society. This issue is prominent in the case of national defense.

To overcome such an issue, the following measures can help:

• Tax: if all those are benefited from the provision of national defense are taxed, then the problem of the free-rider will be solved.
• Market mechanism: if the national defense is provided with the help of a market mechanism then the public good will act as a private good. This will overcome the problem of the free-rider.
• Strict legislation: Strong legal laws can help in overcoming this problem.