What is the main issue associated with the free-rider problem?

The free-rider problem arises when individuals benefit from a resource, good, or service without paying for it, which often leads to under-provision of that good or service. This problem is especially prominent in the context of public goods, which are non-excludable and non-rivalrous. This means that once these goods are provided, individuals cannot be effectively excluded from using them, and one person's use does not diminish the availability for others.

As a result, people may choose to "free ride," relying on others to pay for the good while they enjoy the benefits without contributing. This behavior ultimately discourages producers from supplying the public good, leading to a situation where the good may be underfunded or not provided at all, despite its value to society.

This issue highlights the challenge of collective funding and maintaining the sustainability of public goods, which rely on a shared responsibility among all users to contribute financially. Understanding this dynamic is crucial in fields such as economics, public policy, and resource management.