Free-rider problem

In economics, the term free-rider refers to someone who benefits from resources, goods, or services without paying for the cost of the benefit. The term "free rider" was first used in economic theory of public goods, but similar concepts have been applied in to other contexts, such as collective bargaining, antitrust law, psychology and political science. Free riding may be considered as a free-rider problem when it leads to under-provision of goods or services, or when it leads to overuse or degradation of a common property resource.[1]

Although the term originated in economic theory, similar concepts have been cited in political science, social psychology, and other disciplines. Some individuals in a team or community may reduce their contributions or performance if they believe that one or more other members of the group may free ride.[2]

References

  1. ↑ Baumol, Willaim (1952). Welfare Economics and the Theory of the State. Cambridge, MA: Harvard University Press.
  2. ↑ "Archived copy" (PDF). Archived from the original (PDF) on 2013-06-02. Retrieved 2013-06-12.{{cite web}}: CS1 maint: archived copy as title (link)

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