Problem:
Free riders are frequently discusses in instances of market failure. For illustration, a service like Public Radio receives important support from its listeners. But, many more listeners never contribute any money directly to the public radio. These listeners are instances of "Free Riders", individuals who partake of the public good without paying for it.
Inside the firm, where markets are replaced with the contracts and other non-market agreements, we still have the free rider problem. Give some examples which you have faced. What strategies did management follow to reduce free-riding behaviour by the employees? Was it effective? What measure would you consider optimal?