Question

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

Short answer

Public television stations like PBS try to overcome the free rider problem through a combination of voluntary viewer contributions, fundraising events and drives, corporate and philanthropic support, and government funding. These methods help generate the necessary financial support to maintain accessible, high-quality programming for all viewers while addressing the challenges posed by the non-excludable and non-rivalrous nature of public goods and services.

Step-by-step solution

Understanding the free rider problem

The free rider problem occurs when individuals who can benefit from a public good or service do not pay for it, relying on others to bear the cost. Since public goods are non-excludable (meaning that everyone has access to them regardless if they pay for it or not) and non-rivalrous (one person's use does not diminish its availability for others), the free rider problem can lead to the underproduction and underfunding of public goods and services. Public television stations like PBS face this problem, as their content is available for free to everyone, regardless of whether they contribute financially or not.

Viewers' voluntary contributions

One way that public television stations like PBS try to overcome the free rider problem is by seeking voluntary contributions from their viewers. These contributions can come in the form of one-time donations or ongoing memberships, which often provide donors with unique benefits like access to exclusive content, merchandise, or invitations to special events. By encouraging and promoting voluntary donations, PBS can generate a portion of the funding required to continue providing free and quality content to all viewers.

Fundraising events and drives

Another method used by PBS to overcome the free rider problem is through organizing fundraising events and drives. These events can be broadcasted during breaks in regular programming or as entire pledge drives that showcase the value of public television and emphasize the need for viewer support. Fundraising events often feature special programming and guest appearances to encourage viewers to donate. By making viewers aware of the station's financial needs and the value of their contributions, PBS encourages more viewers to become donors and support the organization financially.

Corporate and philanthropic funding

Public television stations like PBS also overcome the free rider problem by securing funding from corporate sponsors and philanthropic foundations. This funding helps support the production of quality content and enables PBS to continue providing free programming to all viewers. Additionally, corporate sponsors may receive recognition during programmed breaks or logos displayed alongside content, further incentivizing their support.

Government funding

Finally, PBS and other public television stations can receive government funding, which is another method to address the free rider problem. Government funding for public broadcasting is usually granted and regulated by a separate body, like the Corporation for Public Broadcasting (CPB) in the United States. This funding ensures that public television stations can maintain their commitment to providing free and high-quality content to all viewers while acknowledging the societal benefits of its existence. In conclusion, public television stations like PBS try to overcome the free rider problem through a combination of voluntary viewer contributions, fundraising events and drives, corporate and philanthropic support, and government funding. These methods assist in ensuring the sustainability of public television stations and their commitment to providing accessible, high-quality programming to all viewers.