Answer to Question #259934 in Macroeconomics for Nik

Question

1. a. What is free-riding? Why do self-interested players free-ride? Explain via an example.
2. b. Explain via an example (other than the example in the e-book) how introduction of altruism can resolve a social dilemma.

Answer 1

This is a word utilized in stock-trading when describing the selling and buying of share with no immediate capital of covering the trade.

Through team efforts and team cooperation people can be able to identify each others' weakness and find ways to resolve the situations.