Question

Suppose that Timmy lives in a neighborhood where graffiti is common. People's cars and the sides of houses are often vandalized with graffiti. In response to the vandalism, the people in the neighborhood have proposed a voluntary community fund to pay for extra police patrols. There are 1000 people in Timmy's neighborhood, and each is recommended to contribute $10 a month. Timmy's car has recently been vandalized and he is concerned it may happen again. Although he believes that he will benefit from the extra police patrols, Timmy has decided to take a free-rider approach. Given his thinking, how much will Timmy contribute to the fund?

Timmy's contribution: $ ____

Answer 1

Given Timmy has decided to take a free-rider approach, he will not contribute any money to the fund for extra police patrols; his contribution is $0.

Step-by-step explanation:

The student asks how much Timmy will contribute to the fund for extra police patrols, given he has chosen to take a free-rider approach. In economics, a free-rider is an individual who benefits from resources, goods, or services without paying for the cost of the benefit. Since Timmy believes he will benefit from the extra patrols without contributing, the amount he will contribute is $0, as free-riders choose not to pay if they can benefit from the service without paying for it.