Min Xiang
4 Oct 1990
Monday, September 24, 2007
first day of exams today. im really kinda stressed rite now, with econs and physics tmr. arg. today we witness the free rider problem. due to non-excludability of the use of the public toilets in the school, free rider problem occurs, except that instead of having a missing market with no demand, the demand here exceeds the maximum supply as the toilets are rivalry goods. thus, there is a shortage and market fails. in this case, teacher intervention occurs, however as large amount of enforcement is required, teacher intervention fails due to lack of teachers.