This note is a part of my Zettelkasten. What is below might not be complete or accurate. It is also likely to change often.
9th August, 2020

Freerider problem

If one cannot be excluded from obtaining the benefits of a collective good once it is produced, that one has little incentive to contribute voluntarily to the provision of the good.

The temptation to freeride often dominates the decision process.

  • If all participants choose to freeride, the collective good will not be produced at all.
  • If enough participants choose to freeride, the outcome might be one which favours no one
  • If some participants freeride while others contribute, the freeriders will get a higher-than-fair share of the collective benefits.