You are the mayor of a town with 10,000 residents. The head of your economic development agency
recently conducted a survey in which the 10,000 residents said that a small public library in the
center of town would be worth $25 to each of them. Because the cost to build the library is only
$150,000, you arrange to have the library built. Everyone in town enjoys the library, but when you
asked for donations to pay for the library, you only collected $15,000. You are convinced that
most residents of the town are probably free-riders at the library.