Free Rider Problem
In economics, collective bargaining, psychology and political science, "free riders" are those who consume more than their fair share of a resource, or shoulder less than a fair share of the costs of its production. Free riding is usually considered to be an economic "problem" only when it leads to the non-production or under-production of a public good (and thus to Pareto inefficiency), or when it leads to the excessive use of a common property resource. The free rider problem is the question of how to prevent free riding from taking place (or at least limit its negative effects) in these situations.
In the context of labor unions, a free rider is an employee who pays no union dues or agency shop fees, but nonetheless receives the same benefits of union representation as dues-payers. Under U.S. law, unions owe a duty of fair representation to all workers that they represent, regardless of whether they pay dues. Some jurists have questioned the fairness, if not the legality, of this practice.
Free riding is also a term used by brokerages when a client purchases shares beyond his or her means. Free riders are those who purchase shares and then do not pay for them. (See margin.)
Read more about Free Rider Problem: Politics, Bargaining, Example
Famous quotes containing the words free, rider and/or problem:
“Others apart sat on a Hill retir’d,
In thoughts more elevate, and reason’d high
Of Providence, Foreknowledge, Will, and Fate,
Fixt Fate, free will, foreknowledge absolute,
And found no end, in wandring mazes lost.
Of good and evil much they argu’d then,
Of happiness and final misery,
Passion and Apathie, and glory and shame,
Vain wisdom all, and false Philosophie:”
—John Milton (1608–1674)
“The sun that leaps on petals through a nought,
The come a-cropper rider of the flower.”
—Dylan Thomas (1914–1953)
“The great problem of American life [is] the riddle of authority: the difficulty of finding a way, within a liberal and individualistic social order, of living in harmonious and consecrated submission to something larger than oneself.... A yearning for self-transcendence and submission to authority [is] as deeply rooted as the lure of individual liberation.”
—Wilfred M. McClay, educator, author. The Masterless: Self and Society in Modern America, p. 4, University of North Carolina Press (1994)