How does the free rider problem affect the provision of public goods in a market economy?

The free rider problem occurs when people benefit from a good or service without paying for it. This is common with public goods, like clean air or national defense, which everyone can use regardless of whether they contribute to their cost. In a market economy, this can lead to under-provision of these goods because businesses may not find it profitable to produce something that people can enjoy for free. For example, if a community wants to build a park but some residents decide not to contribute, the park might not get built at all because not enough funding is raised. This results in fewer public goods being available, affecting everyone’s quality of life.