In Order to Eliminate a Free Rider Problem or Tragedy

question 44

Multiple Choice

In order to eliminate a free rider problem or tragedy of the commons problem:

• A)the social costs must be realized by the individual.
• B)something must be done to alter individuals' trade-offs.
• C)market participants must internalize the value of the externality.
• D)All of these statements are true.

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Definitions:

Diffusion Of Responsibility

A socio-psychological phenomenon where individuals in a group are less likely to take action or feel responsible when others are present.

Risky Shift

The phenomenon where groups make riskier decisions than individuals would, due to the diffusion of responsibility and other factors.

Decision Polarization

The phenomenon where a group's decisions become more extreme than the individual members' initial positions, often after a discussion or deliberation process.

Deindividuation

A psychological state in which an individual loses self-awareness and self-restraint, often in group settings.