Describe An Experience

Suppose that a particular assignment was given to our group which consisted of 6 people. The marks obtained on this assignment will be same to all the six members. Thus the fact that the efforts involved for each individual is ignored here. Thus irrespective of the fact that whether a member chooses to work or to fink, each will receive the same mark. Thus there is possibility to free ride. The problem of free riding can be often seen in case of public goods. Public goods are difficult to provide through a private market. This is because no individual will want to pay for the good but at the same time will enjoy the good once it is provided. There are no means of excluding these people. Thus a problem of free riding exists. This generally leads to market failure. Consider the case of street light. No single individual will be ready to pay for the provision of street light. But once provided, all will enjoy the benefits. This creates a “free rider” problem. Besides this, it is also difficult to determine a particular price for street light.Similarly, the free riding problem existed in case of our group