Final answer:
The free rider problem occurs with public goods, which are nonexcludable and benefit everyone regardless of whether they have paid for them, leading to potential under-provision unless addressed by government intervention.
Step-by-step explanation:
The concept that information is a public good and that individuals can benefit from it without paying leads to the free rider problem. This problem arises because public goods are nonexcludable, meaning it is difficult to prevent individuals from using the good without paying for it, which may discourage contributors and thus lead to an under-provision of these goods. The government often addresses this challenge through taxation and regulation to ensure that the public goods, including essential services like national defense and public infrastructure, are adequately funded and maintained.