when the free rider problem arises
the free rider problem as an economics issue only occurs under certain conditions economists point out that no business would voluntarily produce goods or services under these conditions when the free rider problem looms businesses back away either the shared resource will not be provided or a public agency must provide it using taxpayer funds as an economic issue the problem occurs when everyone can consume a resource in unlimited amounts no one can limit anyone else s consumption but someone has to produce and maintain the resource on the positive side some people in every community will demonstrate that they feel a responsibility to pay their fair share some combination of a high sense of trust positive reciprocity and a sense of collective duty makes them willing to pay their fair share beyond economicsthe free rider problem can crop up when the resource is shared by all and free to all like air if a community sets voluntary pollution standards that encourage all residents to cut back on carbon based fuels many will respond positively but some will refuse to make any change in their habits if enough follow the standards the air quality will improve and all the residents will benefit equally even the free riders investopedia sydney burnssolutions to the free riding problemcommunities that face a free riding problem may try any of several solutions 