Free Riding: What It Is and Why It Matters
Free riding is a phenomenon that occurs when individuals benefit from collective goods and services without contributing to their production or maintenance. This phenomenon has been studied in a variety of contexts, including economics, sociology, and political science (Ekeh, 1975; Hardin, 1968; Olson, 1965). This article aims to provide an overview of the concept of free riding, how it can be used to explain various social and economic phenomena, and the implications for policy makers.
The concept of free riding is based on the idea that individuals may benefit from collective goods and services without contributing to their production or maintenance. This can happen when individuals consume goods or services without paying for them (the “free rider”), or when individuals reap the benefits of collective action without participating in it (the “free rider” effect). The free rider effect can be seen in contexts such as public goods and services, cooperative efforts, and environmental conservation.
In economics, free riding is often described as a form of market failure, where the lack of incentives to pay for goods and services leads to an inefficient or inadequate provision of those goods and services. This can occur in public goods, where individuals have no incentive to pay for the goods or services as they can receive them without paying. It can also occur in cooperative efforts such as collective bargaining, where the lack of incentives to contribute to the collective effort can lead to an inadequate provision of those efforts.
In sociology, free riding is described as a type of social behavior, where individuals benefit from collective goods and services without contributing to their production or maintenance. This can lead to a situation where some individuals gain at the expense of others, as they are not contributing to the collective effort or paying for the goods and services. This can have implications for social cohesion, as it can lead to feelings of inequality and resentment among members of a group.
In political science, free riding can be used to explain various phenomena, such as the emergence of international organizations and the emergence of global governance. Free riding can lead to situations where some countries benefit from the actions of others without contributing to them, leading to a situation of global inequality. This can also lead to problems with legitimacy, as countries may view global organizations as ineffective or unable to address their concerns.
The implications of free riding for policy makers are clear. Policies should be designed to ensure that individuals have incentives to contribute to collective goods and services, and to ensure that the provision of those goods and services is efficient and equitable. In addition, policies should aim to create a sense of social cohesion and to ensure that individuals are not benefiting at the expense of others.
In conclusion, free riding is a phenomenon that has implications for various social and economic phenomena. It is important to understand the concept of free riding and its implications for policy makers in order to ensure that policies are effective and equitable.
References
Ekeh, P. P. (1975). Social exchange theory: The two traditions. Comparative studies in society and history, 17(3), 174-214.
Hardin, G. (1968). The tragedy of the commons. Science, 162(3859), 1243-1248.
Olson, M. (1965). The logic of collective action: Public goods and the theory of groups. Harvard University Press.