<P> Goods which are subject to free riding are usually characterized by the inability to exclude nonpayers . This problem is sometimes compounded by the fact that common - property goods are characterized by rival consumption . Not only can consumers of common - property goods benefit without payment, but consumption by one imposes an opportunity cost on others . This will lead to overconsumption and even possibly exhaustion or destruction of the common - property good . If too many people start to free ride, a system or service will eventually not have enough resources to operate . </P> <P> The other problem of free - riding is experienced when the production of goods does not consider the external costs, particularly the use of ecosystem services . </P> <P> Government is the primary agency that societies utilize to address the free - rider problem . However, it is also governmental regulations, such as the establishment of commons, which cause free ridership problems to arise in the first place . Regulation is a form of action taken by governments to resolve free - rider problems to prevent environmental degradation or excessive resource use . Practical tacts include compulsory participation (taxation) or a form of regulation and linking the public good to a desirable private good (getting people to pay voluntarily). Governments have imposed taxes when not enough people have voluntarily paid for a public good or service, and some governments have turned a public good into a private one . </P>

Explain characteristics of public goods and free rider problem