Countermeasure Analysis on Free Rider Problem Based on Pig’s Payoff Game

Abstract

The free rider problem has caused many negative effects on the society, and then brought unfairness of distribution. In order to reduce the behaviour that contributing less but could gain more, this paper is going to find ways to solve the problem. The pig’s payoff game is a good model as the big pig's behavior is cooperative and collective, but the small pig's behavior is non-cooperative which is suitable for the free rider problem. The final solution is setting up an applying reward and punishment mechanisms and a method of motivating individuals. The research results show that in order to apply the reward and punishment mechanism, another method focuses on motivating individuals, which means that group members are interested in making more contributions by influencing their incentives. These solutions will help to make people who work harder to gain more. And then improve the fairness.