Free rider problem
Translation- Free rider problem
-
For the article about when a brokerage client purchases shares beyond his or her means, see free riding.
In economics, collective bargaining, psychology, and political science, a free rider (or freeloader) is someone who consumes a resource without paying for it, or pays less than the full cost. The free rider problem is the question of how to limit free riding (or its negative effects). 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 term free rider comes from the example of someone using public transportation without paying the fare. If too many people do this, the system will not have enough money to operate. Another example of a free rider is someone who does not pay his or her share of taxes, which help pay for public goods that all citizens benefit from, such as roads, water treatment plants, and fire services.
Contents
Bargaining
When bargaining, players often bid less than they are prepared to pay in the hope of improving their positions. This creates problems because it is impossible to discover the players' true demand payoff curves, and therefore inefficient allocation of resources is likely to result.
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. Free riding has been a point of legal and political contention for decades.[1] In Canadian labour law, the Rand formula (also referred to as automatic check-off) is a workplace situation in which the payment of trade union dues is mandatory, regardless of the worker's opinion about the union.
See also
- Assurance contract
- Canadians of convenience
- Copyright Infringement
- Criticisms of welfare
- Freighthopping
- Inequity aversion
- Leech (computing)
- Moral hazard
- Parasitism (social offense)
- Public good
- Stowaway
- There ain't no such thing as a free lunch
- Tragedy of the commons
- Vaccination policy
- Welfare state
References
- ^ Gurley, Fred (May 1954). "Unalienable Rights versus Union Shop". Proceedings of the Academy of Political Science (The Academy of Political Science) 26 (1): 58–70. doi:10.2307/1173610. JSTOR 1173610.
External links
Categories:- Market failure
- Game theory
- Economic problems
- Criticisms of welfare
Wikimedia Foundation. 2010.
Look at other dictionaries:
Free-Rider-Problem — Das Trittbrettfahrerproblem (auch free rider problem) bezeichnet ein Problem kollektiven Handelns, bei dem Wirtschaftssubjekte den Nutzen eines Gutes ohne Gegenleistung erlangen. Der Name leitet sich von einer Form des Schwarzfahrens bei… … Deutsch Wikipedia
free-rider problem — эк. проблема безбилетника* (возможность потребления общественного блага без участия в его оплате, которая препятствует производству… … Англо-русский экономический словарь
Free rider — may refer to the following:* the free rider problem in economics and collective bargaining * a stowaway * a game hosted on OneMoreLevel.com reminiscent of the popular webgame/webtoy Line RiderSee also Conductor (transportation) or Freedom… … Wikipedia
Free Rider — Das Trittbrettfahrerproblem (auch free rider problem) bezeichnet ein Problem kollektiven Handelns, bei dem Wirtschaftssubjekte den Nutzen eines Gutes ohne Gegenleistung erlangen. Der Name leitet sich von einer Form des Schwarzfahrens bei… … Deutsch Wikipedia
Free riding — (also known as Freeriding or Free riding) is a term used in the stock trading world to describe the practice of buying shares or other securities without actually having the capital to cover the trade. This is possible when recently bought or… … Wikipedia
Free ride — may refer to: * Freeriding, a style of snowboarding * Freeride, a branch of mountain biking * In finance ** Free riding, buying stocks without the money to cover the purchase ** Free rider problem, how to prevent free riding * Free Ride (TV… … Wikipedia
Free Riding — Das Trittbrettfahrerproblem (auch free rider problem) bezeichnet ein Problem kollektiven Handelns, bei dem Wirtschaftssubjekte den Nutzen eines Gutes ohne Gegenleistung erlangen. Der Name leitet sich von einer Form des Schwarzfahrens bei… … Deutsch Wikipedia
free-rider problem of public goods — проблема неплательщиков в сфере товаров и услуг … Англо-русский словарь по биотехнологиям
Trittbrettfahrer-Problem — Das Trittbrettfahrerproblem (auch free rider problem) bezeichnet ein Problem kollektiven Handelns, bei dem Wirtschaftssubjekte den Nutzen eines Gutes ohne Gegenleistung erlangen. Der Name leitet sich von einer Form des Schwarzfahrens bei… … Deutsch Wikipedia
Ghost Rider 2099 — Infobox comic book title title = Ghost Rider 2099 caption =Ghost Rider 2099 #2 (Jun 1994) Art by Mark Buckingham. schedule = Monthly format = ongoing =y publisher = Marvel 2099 date = May 1994 May 1996 issues = 25 main char team = writers = Len… … Wikipedia
