The free-rider problem faced by private information-collection firms results in their
A)usually going out of business within a few years.
B)collecting less than all the available information about the firms they investigate.
C)being plagued by lawsuits.
D)charging fees higher than can be justified by market conditions.

Question

Quizplus · Accepted Answer

The free-rider problem occurs when others can benefit from the information obtained by private information-collection firms without paying for it. To mitigate this problem, these firms may choose to collect less information than is available.

The Free-Rider Problem Faced by Private Information-Collection Firms Results in Their