Free Rider Problem
The free rider problem happens when people enjoy the benefits of goods provided by the government whether or not they pay for them. Free riders are actors who take more than their fair share of benefits and do not shoulder their share of the costs. The question is how to prevent free riding from taking place, or, at least, limit its effects.
Because the notion of 'fairness' is so subjective, free riding is considered an economic problem when it leads to under or non-production of public goods or excessive use of common property resource.
The classic example is national defense. I am protected whether or not I pay, so there is no reason for me to pay unless forced to do so. The government must provide the good itself and force the public to pay for it with taxes.
Economics Professor
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