Explain, Free riding, where individuals benefit from public goods without contributing, is a significant issue, especially in larger groups, posing a dilemma in achieving optimal provision. Public choice theorists suggest alternative approaches, such as voluntary or fee-based contributions, diverging from tax-based financing. Additionally, concepts of distributive justice come into play, advocating for progressive taxation to ensure fair distribution of the tax burden, especially for essential public goods like healthcare and education. Behavioral economics offers another perspective, exploring whether individuals may reveal preferences beyond self-interest, potentially aiding in overcoming the preference revelation problem.

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Free riding is a concept in economics and public policy where individuals benefit from public goods without contributing towards their provision or ma... View the full answer