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Free-rider problem. In economics, the free-rider problem is a type of market failure that occurs when those who benefit from resources, public goods and common pool resources do not pay for them [ 1] or under-pay. Examples of such goods are public roads or public libraries or other services or utilities of a communal nature.
In economics, a public good (also referred to as a social good or collective good) [1] is a good that is both non-excludable and non-rivalrous. Use by one person neither prevents access by other people, nor does it reduce availability to others. [1] Therefore, the good can be used simultaneously by more than one person. [2]
Collective action problem. A collective action problem or social dilemma is a situation in which all individuals would be better off cooperating but fail to do so because of conflicting interests between individuals that discourage joint action. [ 1][ 2][ 3] The collective action problem has been addressed in political philosophy for centuries ...
Collective action theory. The collective action theory was first published by Mancur Olson in 1965. Olson argues that any group of individuals attempting to provide a public good has difficulty doing so efficiently. On the one hand individuals have incentives to "free-ride" on the efforts of others in certain groups and on the other hand the ...
In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced components that are involved in either consumer or producer market transactions. Air pollution from motor vehicles is one example.
The Logic of Collective Action: Public Goods and the Theory of Groups is a book by Mancur Olson Jr. published in 1965. It develops a theory of political science and economics of concentrated benefits versus diffuse costs. Its central argument is that concentrated minor interests will be overrepresented and diffuse majority interests trumped ...
Notable economists. Lists. Business portal. Money portal. v. t. e. The tragedy of the commons is the concept which states that if many people enjoy unfettered access to a finite, valuable resource such as a pasture, they will tend to overuse it and may end up destroying its value altogether. Even if some users exercised voluntary restraint, the ...
Public good. The economic theory of collective action is concerned with the provision of public goods (and other collective consumption) through the collaboration of two or more individuals, and the impact of externalities on group behavior. It is more commonly referred to as Public Choice.