Terms

Free Riding

Free Riding occurs when one participant accrues benefits from a situation without contributing anything to sustaining that situation

  • One of the oldest & most pervasive problems in the world
    • Examples:
      • An able-bodied person who collects government benefits without paying any taxes
      • A student shares in a group grade but doesn't contribute any effort
  • Those who take the benefits can be called "parasites"
  • The situation works up until a point where the number of parasites grows till the system can't support them all and collapses

Recent Examples (2018)
  • Bank executive with huge salaries while depositors earn less than inflation on their savings