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How do public television stations, like PBS, try to overcome the free rider problem?

Short Answer

Expert verified

The problem is dealt by levying a charge to access PBS.

Step by step solution

01

Step 1. Introduction:

A free rider is an individual who does not pay for a public good but is willing to enjoy the benefits of a public good that is financed by other people.

02

Step 2. Explanation:

Public television channels, such as PBS, address the issue of free riding by setting an acceptable price for the product, ensuring that demand generates income from supply. When clients are willing to pay the full price of a product, the free rider problem can be overcome by effectively marketing its products.

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