Each member in a group might do what's best for himself or herself instead of behaving in a way that optimizes the well-being of the entire group.This gives rise to the problem of ________.
A) Pareto inefficiency
B) free riding
C) irrational behavior
D) disequilibrium

Question

Quizplus · Accepted Answer

Free riding occurs when an individual in a group benefits from the actions of others without contributing their fair share. This can lead to inefficient outcomes where the group's well-being is not optimized.

Each Member in a Group Might Do What's Best for Himself