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.)
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Famous quotes containing the words free, rider and/or problem:
“I had some short struggle in my mind whether I should resign my lover or my liberty, but this lasted not long. I found myself as free as air and could not bear the thought of putting myself in any man’s power for life only from a present capricious inclination.”
—Sarah Fielding (1710–1768)
“Came to Ajanta cave, the painted space of the breast,
the real world where everything is complete,
there are no shadows, the forms of incompleteness,
The great cloak blows in the light, rider and horse arrive,
the shoulders turn and every gift is made.”
—Muriel Rukeyser (1913–1980)
“Will women find themselves in the same position they have always been? Or do we see liberation as solving the conditions of women in our society?... If we continue to shy away from this problem we will not be able to solve it after independence. But if we can say that our first priority is the emancipation of women, we will become free as members of an oppressed community.”
—Ruth Mompati (b. 1925)