Free Rider Issue

The free-rider issue is an economic failure in society. A free rider means someone who gets a resource for free, and the person can even take the item for free, even if they can pay for it. Some individuals consume for their fair share or pay less for it. This makes distribution inequitable, as there is no fairness and impartiality, and many who have paid for the resources could not benefit from it.

However, the problem at times is beyond the scope of economics. In a typical scenario, shared resources like environmental elements such as air are all responsible. However, if society is tasked with positively contributing to saving the environment, some may contribute, while others may not. In this scenario, the people who have contributed might think that their effort is negated by the free riders altogether.

Small charges on utilising shared resources will prevent overconsumption of resources, ensuring that people know the worth of everything they are using.

It happens in the case of education too. Wherein group activities with many participants in it, and only a few contribute to the group activity; others reap the benefit of just being in the group without actually contributing much.