Free rider problem

Definition

The free rider problem occurs when individuals benefit from resources, goods, or services that they do not pay for, which leads to an under-provision of those public goods because others are reluctant to contribute to something they can obtain for free. This issue is particularly relevant in the context of group political activities and interest groups, where collective action is necessary but individual incentives may lead to non-contribution.

Related terms

Collective Action Problems: Issues that arise from individuals acting in their own self-interest rather than working together towards a common goal or good.

Public Goods: Goods that are non-excludable and non-rivalrous, meaning no one can be prevented from using them and one person's use does not reduce availability for others.

Interest Groups: Organizations formed to advocate for specific interests by influencing public policy and decision-making processes without seeking electoral competition