A Unanimity Rule Suffers from the Holdout Problem

question 26

True/False

A unanimity rule suffers from the holdout problem.

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Definitions:

Public Good

A good that is both non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from its use, and use by one does not reduce its availability to others.

Public Goods

Public goods are those that are non-excludable and non-rivalrous, meaning they can be used simultaneously by more than one person without diminishing the supply.

Politically Powerful

Individuals, organizations, or entities that possess a significant influence over political decisions, policies, and outcomes.

Marginal Benefit

The extra benefit or satisfaction derived from the consumption of an additional unit of a good or service.