Free riding is usually considered to be an economic "problem" only when it leads to the non-production or under-production (in a collectivist sense) of a public good (and thus to Pareto inefficiency), or when it leads to the excessive use of a common property resource.
I'm arguing that free riding isn't a problem in this case.
Drug companies have a rather unique demand for credible certification of their products' efficacy. Of course, some certifications will simply be shills for the drug companies, but doctors and health insurers will learn which certifying agencies are more honest than others and hence certification from a more honest firm will be worth more to the drug company since it will boost sales more.[1] It's no more of a "free rider" problem than Google, which has tons of free riders (search users) but whose customers (advertisers) want there to be more free riders, not less. Likewise, drug companies will want to get a certification that has tons of doctors and insurance companies and pharmacies that respect that certification, even though those are all "free riders".
Sounds similar to public companies paying for their own ratings agencies. I agree such a system seems like it could work for health and food safety; I'd like to see some real-world examples of a highly-functioning one in, say, another country.
I'm arguing that free riding isn't a problem in this case.
Drug companies have a rather unique demand for credible certification of their products' efficacy. Of course, some certifications will simply be shills for the drug companies, but doctors and health insurers will learn which certifying agencies are more honest than others and hence certification from a more honest firm will be worth more to the drug company since it will boost sales more.[1] It's no more of a "free rider" problem than Google, which has tons of free riders (search users) but whose customers (advertisers) want there to be more free riders, not less. Likewise, drug companies will want to get a certification that has tons of doctors and insurance companies and pharmacies that respect that certification, even though those are all "free riders".