Free rider behavior (also free rider problem - English free rider problem) one calls the phenomenon in the political economy that restaurant economics attain the use of a property without for it to pay. Free rider behavior is possible only at goods, at which no excluding barness is possible, i.e. at pure public goods and common land goods. At public goods being present from free rider behavior leads to a tendentious Unterversorgung, at common land goods to a tendentious excessive use. From this market failure the demand is often derived to a national interference into the market.

Example of free rider behavior

The most usual example of free rider behavior is the national defense: No person can be excluded from the military protection of the national defense, why it is rational for an individual to reject the participation in the costs of security. A financing of the national defense on freiwilliger basis not possibly becomes thereby.

Measures against free rider behavior

There free rider behavior to a Unterversorgung (possibly even a zero-supply) with public goods and a over consumption of common land goods leads, is pareto inefficient a Nichteingreifen into the market. Mainly two kinds of the interference offer themselves.

Possibility for the exclusion

The marktnaheste form of the interference is the creation of exclusion possibilities. If this succeeds, then a club property becomes, from a common land property an individual property from a public property. Examples of a "“artificial"” excluding barness of the consumption are duty, Pay TV (private) or taxes (national).

National supply of public goods

If excluding barness within a reasonable cost framework cannot be ensured, then a supply of the property can become necessary on the part of the state. The case of the national defense specified above is an example for this.

See also

• Social dilemma
• Tragik that common land
• Moral Hazard

Related links

• Free Rider Revisited - a term analysis to the "“free rider"” - problem

Articles in category "Free rider behavior (economics)"

We found here 20 articles.