Report: The Free Rider Problem
provide public goods. Some ideologies, such as libertarian capitalism, are often rebuked,
because in such a system all property in a society would be privately owned, away from
any state involvement or regulation. Libertarians counter that potential free riders within
their system could face social ostracism, which may deter those who accept services
without donating any payment for them. Libertarians stress that the need to healthily co-
operate and interact with others in society would lessen the risk and likelihood of free
riders.
3
The Example
The free rider problem has deep roots in more general bargaining, and issues to do with
incentive compatibility. That is to say that, when involved in bargaining problems,
players may often bid less than they are prepared to pay in the hope of improving their
own position
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