The free-rider problem is central to Mancur Olson's theory of collective action, which posits that individuals in large groups may benefit from a public good without contributing to its cost. Olson argues that when individuals can enjoy the benefits of a good or service without paying for it, they have little incentive to contribute, leading to under-provision of the good. This phenomenon is particularly pronounced in large groups, where personal contributions become less noticeable. Consequently, Olson suggests that smaller or more organized groups are more effective in overcoming the free-rider problem and achieving collective goals.
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