Final answer:
The free rider problem occurs when individuals benefit from public goods without paying for them. Voluntary contributions to public goods like a park can be deterred by this issue, which often necessitates government intervention through taxation to ensure provision and maintenance of these goods and services.
Step-by-step explanation:
When discussing voluntary contributions towards a public good like a park, we encounter the issue of the free rider problem. This problem arises because public goods are non-excludable and non-rival, meaning they can be used by everyone without paying for them, and one person's use does not prevent another's. For instance, a public city park might be free to access but may charge fees for parking, reserving picnic grounds, or purchasing food at a refreshment stand. This represents a mixture of public provision at no charge along with fees for some purposes.
The dilemma of contributing to a public good is akin to the prisoner's dilemma. If neither person contributes, the good is not created. If one contributes and the other does not, the contributor loses out financially while the non-contributor gains benefits without cost. If both parties contribute, they both benefit more than their cost. However, the temptation for each individual is to not contribute and hope to free ride on the other's contribution, leading potentially to the good not being created at all.