The pollution market failure is an example of the free rider problem.

Question

Quizplus · Accepted Answer

Pollution market failure is primarily an example of a negative externality, where the social costs of pollution are not fully borne by the producers or consumers of polluting goods, but rather by society at large. The free rider problem, on the other hand, typically refers to situations where individuals can benefit from a good without paying for it, leading to under-provision of that good.

The Pollution Market Failure Is an Example of the Free