The free rider problem

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Source: The Manila Times
Published: 2026-05-26 02:05 UTC+10:00
Section: General
Factuality Score: 100
Opinion Category: Neutral
Topics: Politics, Science, Economy & Finance, Financial Markets, Tax & Budget, Space, Business & Economy, Asia Pacific
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Snippet:
THERE is a market failure in economics known as the free rider problem. It happens when some people consume public goods and services without paying for them, while the costs are shouldered by the rest of taxpayers. In an emerging market like the Philippines, there are many free riders, posing a heavy burden on the government’s narrowing fiscal space and people’s budget.
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