Why free-rider problem greater in a large group than small

Assignment Help Microeconomics
Reference no: EM13878428

1. Explain why the "free-rider" problem is likely to be greater in a "large" group than in a "small" group.

2. The common interest of people who are in a burning theater is to walk out orderly and in other ways avoid a panic. If that is the case, why do people so frequently panic in such situations? Use rational behavior and the logic of collective action in your answer.

Reference no: EM13878428

Questions Cloud

Biggest challenge in terms of cross-cultural management : the biggest challenge in terms of cross-cultural management
What is the revaluation model of accounting : Intangible assets acquired via a separate acquisition are always recognised - how is an intangible asset acquired as part of a business combination measured for initial recognition? Why?
New investment that plans to finance using one-third debt : The Walgreen Corporation is contemplating a new investment that it plans to finance using one-third debt. The firm can sell new $1000 par value bonds with a 15 year maturity at a price of $947 that carries a coupon interest rate of 12.8 percent that ..
Important features of an effective communication : What do you consider to be the most important features of an effective communication? Explain your choices
Why free-rider problem greater in a large group than small : Explain why the "free-rider" problem is likely to be greater in a "large" group than in a "small" group.
What are the floatation costs for issuing preferred share : The preferred stock of Gator Industries sells for $34.63 and pays $2.77 per year in dividends. What is the cost of preferred stock financing?  What are the floatation costs for issuing the preferred share and how should this cost be incorporated into..
Why free-rider problem greater in a large group than small : Explain why the "free-rider" problem is likely to be greater in a "large" group than in a "small" group.
Relationship between business and organizational strategy : Describe the relationship between the business strategy, organizational strategy, and the technology strategy. In your opinion: is there a good alignment between the two, provide two examples to support your answer - about 2-3 paragraphs
Compute the cost of capital for the firm : Compute the cost of capital for the firm for the following: a. A bond that has a $1,000.00 par value (face value) and a contract or coupon interest rate of 11.6 percent. Interest payments are $58.00 and are paid semiannually. The after-tax cost of de..

Reviews

Write a Review

Microeconomics Questions & Answers

  Collect information regarding the minimum wage

Collect information regarding the minimum wage. State the purpose of this legal price, assess its impact on the market for labor, and evaluate the extent to which it achieves its purpose.

  Explain how price of a good you buy is affected by changes

Explain how the price of a good you buy is affected by changes in the prices of (a) substitute goods and (b) complementary goods - Why does the demand curve slope downward?

  The equivalent annual worth is most nearly

A product is expected to earn 25,000 at the end of the first year, and to decrease 500 subsequent year. This product is going to be in service five years. The market value at the end of five years is 5,000. At an interest rate of return of 5%,..

  Distinguish between explicit and implicit costs

Distinguish between explicit & implicit costs, giving example of each and what are the explicit & implicit costs of attending college?? Why does the economist classify normal profit as a cost?

  Explain rises or falls in short-term interest rates

Suppose you were the manager of a bank that raised most of its funds from short- term variable-rate deposits and used these funds to make fixed-rate mortgage loans. Should you be more concerned about rises or falls in short-term interest rates? ..

  Calculate the equilibrium price and quantity

Calculate the equilibrium price and quantity

  Explain possible pitfalls for such strategy from geh''s

Explain possible pitfalls for such strategy from GEH's perspective.

  How does game theory relate to competitive advantage

Explain game theory and how you can apply the concepts in your life and work now and in the future? How does game theory relate to competitive advantage?

  Assume that two countries engage in free trade recognize

suppose that the u.s and japan are two ricardian economies. both countries can produce only two goods automobiles and

  Functions of major regional economic integrations

What is the identity and the intended functions of major regional economic integrations

  Difference between voluntary and involuntary manslaughter

Difference between voluntary and involuntary manslaughter

  Concerning the partial equilibrium effects of congestion tax

Assuming the revenue from a congestion tax is not redistributed to city residents, what effect would a congestion tax have on the residential bid rent curve? If the government reduced other taxes after instituting a congestion tax, how would the resu..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd