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11 votes

Why is the Free Rider Problem a problem?

I would also add to @afreelunch's answer that not all free riders play the exact same role in every situation. In the example cited by him about street lights, it is quite obvious that people there ...
Ignacio Valdés Zamudio's user avatar
8 votes

Piracy/File sharing - Why aren't songs, movies or ebooks given for free (+ads) like TV?

What I don't see here is an economic model, however rudimentary, that will allow us not to definitely answer the question but to clarify what are the critical issues. So here's one (totally ...
Alecos Papadopoulos's user avatar
6 votes

Why is the Free Rider Problem a problem?

The existing answers are covering mostly only situations where the 'free riders' aren't using up anything. It's important to note that an emergency room is absolutely not such an example. Someone who ...
reirab's user avatar
  • 430
5 votes

How does the Austrian school address the free-rider problem for public goods like national defense?

Austrian School, as every other school including let's say Marxist School, as such is a set of methodologies not necessarily policy conclusions about what policies ought to be pursued (see Brue & ...
1muflon1's user avatar
  • 57k
4 votes
Accepted

Is it possible to sell a rival and non-excludable product?

A good is excludable if people can be prevented from using it. If one person is using any rival good then this good won't be available for others. You asked about rival and non-excludable good such as ...
desi arthshastri's user avatar
3 votes

Piracy/File sharing - Why aren't songs, movies or ebooks given for free (+ads) like TV?

Isn't this mostly an issue of pricing at a level where most people feel it's worth paying to avoid the hassle (and potential legal issues) of piracy? Take music singles for example: when I was a ...
Will Appleby's user avatar
2 votes

Why is the Free Rider Problem a problem?

It is a "problem" because if no one pays for the good or service (they are 'free' riding after all), sellers of that product have no incentive to produce it. If no one produces it, and the good or ...
Mishal Ahmed's user avatar
2 votes

Why is the Free Rider Problem a problem?

Surprisingly no one has mentioned the tragedy of the commons. Having been born in the Soviet Union where everything was public and everyone was a free rider, I used to call it the tragedy of my life. ...
Arthur Tarasov's user avatar
2 votes

Why is the Free Rider Problem a problem?

There are other aspects, which (I think) has not been mentioned by other answers. If people have the choice to pay for something, or to be a free rider, almost everyone will choose to be a free rider....
AMADANON Inc.'s user avatar
2 votes

Research around the free-rider problem when the resource is taken away?

This may not be exactly what you're looking for, but your question reminds me of the work of Elinor Ostrom, who (along with Oliver Williamson) won the Nobel in Economics for her work on what academics ...
Theoretical Economist's user avatar
1 vote

Rival and non excludable products

Putting my comment into a short answer, rivalry can in some sense exacerbate the problem of free riding. In a free-riding problem, it is not possible to exclude non-payers from consumption, which ...
Bayesian's user avatar
  • 5,291
1 vote
Accepted

Rival and non excludable products

To continue the example of the street performer: Suppose there are two people offering the performer money, but in exchange they want her to perform different songs. Person A prefers song A while ...
Giskard's user avatar
  • 29.4k
1 vote

Piracy/File sharing - Why aren't songs, movies or ebooks given for free (+ads) like TV?

I will only address e-books (and other text), and discuss the technical issues. These technical issues make e-books distinct from other electronic media. An e-book is a compressed file that contains ...
Brian Romanchuk's user avatar

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