can express the free rider problem in terms of the prisoner’s dilemma game, which we discussed as a

representation of oligopoly in Monopolistic Competition and Oligopoly.

There is a dilemma with the Prisoner’s Dilemma, though. See the Work It Out feature.

WORK IT OUT

The Problem with the Prisoner’s Dilemma
Suppose two people, Rachel and Samuel, are considering purchasing a public good. The difficulty with the

prisoner’s dilemma arises as each person thinks through their strategic choices.

Step 1. Rachel reasons in this way: If Samuel does not contribute, then I would be a fool to contribute. However,

if Samuel does contribute, then I can come out ahead by not contributing.

Step 2. Either way, I should choose not to contribute, and instead hope that I can be a free rider who uses the

public good paid for by Samuel.

Step 3. Samuel reasons the same way about Rachel.

Step 4. When both people reason in that way, the public good never gets built, and there is no movement to the
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