Terms

  1. Home
  2. Terms
  3. Free Riding

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

Warnings and Disclaimers

The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal financial situation - we are not investment advisors nor do we give personalized investment advice. The opinions expressed herein are those of the publisher and are subject to change without notice. It may become outdated an there is no obligation to update any such information.

Copyright Finnotes.org © 2018 - 2020