Interest groups are referred to as group of people with similar interests. Interest groups do offer people things like t-shirts or magazine subscription in return for joining the organization so as to order to overcome the free rider problem.
- A lot of interest groups gives material benefits that is benefits given only to group members.
The free rider problem known to be an example of a market failure.
It is known as an bad distribution of goods or services that takes place when some individuals are allowed to use more than their fair share of the shared resource or when they pay less than their fair share of the costs.
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