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class="vector-toc-text"> <span class="vector-toc-numb">3.1</span> <span>Assurance contracts</span> </div> </a> <ul id="toc-Assurance_contracts-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Coasian_solution" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Coasian_solution"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.2</span> <span>Coasian solution</span> </div> </a> <ul id="toc-Coasian_solution-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Introducing_an_exclusion_mechanism_(club_goods)" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Introducing_an_exclusion_mechanism_(club_goods)"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.3</span> <span>Introducing an exclusion mechanism (club goods)</span> </div> </a> <ul id="toc-Introducing_an_exclusion_mechanism_(club_goods)-sublist" class="vector-toc-list"> </ul> </li> <li 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Altruistic solutions subsection</span> </button> <ul id="toc-Altruistic_solutions-sublist" class="vector-toc-list"> <li id="toc-Social_norms" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Social_norms"> <div class="vector-toc-text"> <span class="vector-toc-numb">4.1</span> <span>Social norms</span> </div> </a> <ul id="toc-Social_norms-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Altruistic_social_sanctions" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Altruistic_social_sanctions"> <div class="vector-toc-text"> <span class="vector-toc-numb">4.2</span> <span>Altruistic social sanctions</span> </div> </a> <ul id="toc-Altruistic_social_sanctions-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-See_also" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#See_also"> <div class="vector-toc-text"> <span class="vector-toc-numb">5</span> <span>See also</span> </div> </a> <ul id="toc-See_also-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Notes" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Notes"> <div class="vector-toc-text"> <span class="vector-toc-numb">6</span> <span>Notes</span> </div> </a> <ul id="toc-Notes-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Further_reading" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Further_reading"> <div class="vector-toc-text"> <span class="vector-toc-numb">7</span> <span>Further reading</span> </div> </a> <ul id="toc-Further_reading-sublist" class="vector-toc-list"> </ul> </li> </ul> </div> </div> </nav> </div> </div> <div class="mw-content-container"> <main id="content" class="mw-body"> <header class="mw-body-header vector-page-titlebar"> <nav aria-label="Contents" class="vector-toc-landmark"> <div id="vector-page-titlebar-toc" class="vector-dropdown vector-page-titlebar-toc vector-button-flush-left" > <input type="checkbox" id="vector-page-titlebar-toc-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-page-titlebar-toc" class="vector-dropdown-checkbox " aria-label="Toggle the table of contents" > <label id="vector-page-titlebar-toc-label" for="vector-page-titlebar-toc-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-listBullet mw-ui-icon-wikimedia-listBullet"></span> <span class="vector-dropdown-label-text">Toggle the table of contents</span> </label> <div class="vector-dropdown-content"> <div id="vector-page-titlebar-toc-unpinned-container" class="vector-unpinned-container"> </div> </div> </div> </nav> <h1 id="firstHeading" class="firstHeading mw-first-heading"><span class="mw-page-title-main">Free-rider problem</span></h1> <div id="p-lang-btn" class="vector-dropdown mw-portlet mw-portlet-lang" > <input type="checkbox" id="p-lang-btn-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-p-lang-btn" class="vector-dropdown-checkbox mw-interlanguage-selector" aria-label="Go to an article in another language. Available in 33 languages" > <label id="p-lang-btn-label" for="p-lang-btn-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--action-progressive mw-portlet-lang-heading-33" aria-hidden="true" ><span class="vector-icon mw-ui-icon-language-progressive mw-ui-icon-wikimedia-language-progressive"></span> <span class="vector-dropdown-label-text">33 languages</span> </label> <div class="vector-dropdown-content"> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li class="interlanguage-link interwiki-ar mw-list-item"><a href="https://ar.wikipedia.org/wiki/%D9%85%D8%B4%D9%83%D9%84%D8%A9_%D8%A7%D9%84%D8%B1%D8%A7%D9%83%D8%A8_%D8%A8%D8%A7%D9%84%D9%85%D8%AC%D8%A7%D9%86" title="مشكلة الراكب بالمجان – Arabic" lang="ar" hreflang="ar" data-title="مشكلة الراكب بالمجان" data-language-autonym="العربية" data-language-local-name="Arabic" class="interlanguage-link-target"><span>العربية</span></a></li><li class="interlanguage-link interwiki-ca mw-list-item"><a href="https://ca.wikipedia.org/wiki/Problema_del_poliss%C3%B3" title="Problema del polissó – Catalan" lang="ca" hreflang="ca" data-title="Problema del polissó" data-language-autonym="Català" data-language-local-name="Catalan" class="interlanguage-link-target"><span>Català</span></a></li><li class="interlanguage-link interwiki-cs mw-list-item"><a href="https://cs.wikipedia.org/wiki/%C4%8Cern%C3%BD_pasa%C5%BE%C3%A9r_(kolektivn%C3%AD_jedn%C3%A1n%C3%AD)" title="Černý pasažér (kolektivní jednání) – Czech" lang="cs" hreflang="cs" data-title="Černý pasažér (kolektivní jednání)" data-language-autonym="Čeština" data-language-local-name="Czech" class="interlanguage-link-target"><span>Čeština</span></a></li><li class="interlanguage-link interwiki-da mw-list-item"><a href="https://da.wikipedia.org/wiki/Gratist" title="Gratist – Danish" lang="da" hreflang="da" data-title="Gratist" data-language-autonym="Dansk" data-language-local-name="Danish" class="interlanguage-link-target"><span>Dansk</span></a></li><li class="interlanguage-link interwiki-de mw-list-item"><a href="https://de.wikipedia.org/wiki/Trittbrettfahrerproblem" title="Trittbrettfahrerproblem – German" lang="de" hreflang="de" data-title="Trittbrettfahrerproblem" data-language-autonym="Deutsch" data-language-local-name="German" class="interlanguage-link-target"><span>Deutsch</span></a></li><li class="interlanguage-link interwiki-et mw-list-item"><a href="https://et.wikipedia.org/wiki/Tasuta_kasutaja_probleem" title="Tasuta kasutaja probleem – Estonian" lang="et" hreflang="et" data-title="Tasuta kasutaja probleem" data-language-autonym="Eesti" data-language-local-name="Estonian" class="interlanguage-link-target"><span>Eesti</span></a></li><li class="interlanguage-link interwiki-el mw-list-item"><a href="https://el.wikipedia.org/wiki/%CE%A4%CE%BF_%CF%80%CF%81%CF%8C%CE%B2%CE%BB%CE%B7%CE%BC%CE%B1_%CF%84%CE%BF%CF%85_%CE%BB%CE%B1%CE%B8%CF%81%CE%B5%CF%80%CE%B9%CE%B2%CE%AC%CF%84%CE%B7" title="Το πρόβλημα του λαθρεπιβάτη – Greek" lang="el" hreflang="el" data-title="Το πρόβλημα του λαθρεπιβάτη" data-language-autonym="Ελληνικά" data-language-local-name="Greek" class="interlanguage-link-target"><span>Ελληνικά</span></a></li><li class="interlanguage-link interwiki-es mw-list-item"><a href="https://es.wikipedia.org/wiki/Problema_del_poliz%C3%B3n" title="Problema del polizón – Spanish" lang="es" hreflang="es" data-title="Problema del polizón" data-language-autonym="Español" data-language-local-name="Spanish" class="interlanguage-link-target"><span>Español</span></a></li><li class="interlanguage-link interwiki-eu mw-list-item"><a href="https://eu.wikipedia.org/wiki/Polizoiaren_problema" title="Polizoiaren problema – Basque" lang="eu" hreflang="eu" data-title="Polizoiaren problema" data-language-autonym="Euskara" data-language-local-name="Basque" class="interlanguage-link-target"><span>Euskara</span></a></li><li class="interlanguage-link interwiki-fa mw-list-item"><a href="https://fa.wikipedia.org/wiki/%D9%85%D8%B9%D8%B6%D9%84_%D9%85%D9%81%D8%AA%E2%80%8C%D8%B3%D9%88%D8%A7%D8%B1%DB%8C" title="معضل مفت‌سواری – Persian" lang="fa" hreflang="fa" data-title="معضل مفت‌سواری" data-language-autonym="فارسی" data-language-local-name="Persian" class="interlanguage-link-target"><span>فارسی</span></a></li><li class="interlanguage-link interwiki-fr mw-list-item"><a href="https://fr.wikipedia.org/wiki/Passager_clandestin_(%C3%A9conomie)" title="Passager clandestin (économie) – French" lang="fr" hreflang="fr" data-title="Passager clandestin (économie)" data-language-autonym="Français" data-language-local-name="French" class="interlanguage-link-target"><span>Français</span></a></li><li class="interlanguage-link interwiki-ko mw-list-item"><a href="https://ko.wikipedia.org/wiki/%EB%AC%B4%EC%9E%84%EC%8A%B9%EC%B0%A8_%EB%AC%B8%EC%A0%9C" title="무임승차 문제 – Korean" lang="ko" hreflang="ko" data-title="무임승차 문제" data-language-autonym="한국어" data-language-local-name="Korean" class="interlanguage-link-target"><span>한국어</span></a></li><li class="interlanguage-link interwiki-hy mw-list-item"><a href="https://hy.wikipedia.org/wiki/%D4%B1%D5%B6%D5%BF%D5%B8%D5%B4%D5%BD_%D5%B8%D6%82%D5%B2%D6%87%D5%B8%D6%80%D5%AB_%D5%A7%D6%86%D5%A5%D5%AF%D5%BF" title="Անտոմս ուղևորի էֆեկտ – Armenian" lang="hy" hreflang="hy" data-title="Անտոմս ուղևորի էֆեկտ" data-language-autonym="Հայերեն" data-language-local-name="Armenian" class="interlanguage-link-target"><span>Հայերեն</span></a></li><li class="interlanguage-link interwiki-hr mw-list-item"><a href="https://hr.wikipedia.org/wiki/Problem_mukta%C5%A1enja" title="Problem muktašenja – Croatian" lang="hr" hreflang="hr" data-title="Problem muktašenja" data-language-autonym="Hrvatski" data-language-local-name="Croatian" class="interlanguage-link-target"><span>Hrvatski</span></a></li><li class="interlanguage-link interwiki-id mw-list-item"><a href="https://id.wikipedia.org/wiki/Permasalahan_penumpang_gratis" title="Permasalahan penumpang gratis – Indonesian" lang="id" hreflang="id" data-title="Permasalahan penumpang gratis" data-language-autonym="Bahasa Indonesia" data-language-local-name="Indonesian" class="interlanguage-link-target"><span>Bahasa Indonesia</span></a></li><li class="interlanguage-link interwiki-it mw-list-item"><a href="https://it.wikipedia.org/wiki/Problema_del_free_rider" title="Problema del free rider – Italian" lang="it" hreflang="it" data-title="Problema del free rider" data-language-autonym="Italiano" data-language-local-name="Italian" class="interlanguage-link-target"><span>Italiano</span></a></li><li class="interlanguage-link interwiki-he mw-list-item"><a href="https://he.wikipedia.org/wiki/%D7%91%D7%A2%D7%99%D7%99%D7%AA_%D7%94%D7%98%D7%A8%D7%9E%D7%A4%D7%99%D7%A1%D7%98" title="בעיית הטרמפיסט – Hebrew" lang="he" hreflang="he" data-title="בעיית הטרמפיסט" data-language-autonym="עברית" data-language-local-name="Hebrew" class="interlanguage-link-target"><span>עברית</span></a></li><li class="interlanguage-link interwiki-hu mw-list-item"><a href="https://hu.wikipedia.org/wiki/Potyautas-probl%C3%A9ma" title="Potyautas-probléma – Hungarian" lang="hu" hreflang="hu" data-title="Potyautas-probléma" data-language-autonym="Magyar" data-language-local-name="Hungarian" class="interlanguage-link-target"><span>Magyar</span></a></li><li class="interlanguage-link interwiki-ms mw-list-item"><a href="https://ms.wikipedia.org/wiki/Masalah_penumpang_percuma" title="Masalah penumpang percuma – Malay" lang="ms" hreflang="ms" data-title="Masalah penumpang percuma" data-language-autonym="Bahasa Melayu" data-language-local-name="Malay" class="interlanguage-link-target"><span>Bahasa Melayu</span></a></li><li class="interlanguage-link interwiki-nl mw-list-item"><a href="https://nl.wikipedia.org/wiki/Dilemma_van_de_collectieve_actie" title="Dilemma van de collectieve actie – Dutch" lang="nl" hreflang="nl" data-title="Dilemma van de collectieve actie" data-language-autonym="Nederlands" data-language-local-name="Dutch" class="interlanguage-link-target"><span>Nederlands</span></a></li><li class="interlanguage-link interwiki-ja mw-list-item"><a href="https://ja.wikipedia.org/wiki/%E3%83%95%E3%83%AA%E3%83%BC%E3%83%A9%E3%82%A4%E3%83%80%E3%83%BC" title="フリーライダー – Japanese" lang="ja" hreflang="ja" data-title="フリーライダー" data-language-autonym="日本語" data-language-local-name="Japanese" class="interlanguage-link-target"><span>日本語</span></a></li><li class="interlanguage-link interwiki-no mw-list-item"><a href="https://no.wikipedia.org/wiki/Gratispassasjerproblemet" title="Gratispassasjerproblemet – Norwegian Bokmål" lang="nb" hreflang="nb" data-title="Gratispassasjerproblemet" data-language-autonym="Norsk bokmål" data-language-local-name="Norwegian Bokmål" class="interlanguage-link-target"><span>Norsk bokmål</span></a></li><li class="interlanguage-link interwiki-pl mw-list-item"><a href="https://pl.wikipedia.org/wiki/Efekt_gapowicza" title="Efekt gapowicza – Polish" lang="pl" hreflang="pl" data-title="Efekt gapowicza" data-language-autonym="Polski" data-language-local-name="Polish" class="interlanguage-link-target"><span>Polski</span></a></li><li class="interlanguage-link interwiki-pt mw-list-item"><a href="https://pt.wikipedia.org/wiki/Clandestinidade_(economia)" title="Clandestinidade (economia) – Portuguese" lang="pt" hreflang="pt" data-title="Clandestinidade (economia)" data-language-autonym="Português" data-language-local-name="Portuguese" class="interlanguage-link-target"><span>Português</span></a></li><li class="interlanguage-link interwiki-ru mw-list-item"><a href="https://ru.wikipedia.org/wiki/%D0%AD%D1%84%D1%84%D0%B5%D0%BA%D1%82_%D0%B1%D0%B5%D0%B7%D0%B1%D0%B8%D0%BB%D0%B5%D1%82%D0%BD%D0%B8%D0%BA%D0%B0" title="Эффект безбилетника – Russian" lang="ru" hreflang="ru" data-title="Эффект безбилетника" data-language-autonym="Русский" data-language-local-name="Russian" class="interlanguage-link-target"><span>Русский</span></a></li><li class="interlanguage-link interwiki-simple mw-list-item"><a href="https://simple.wikipedia.org/wiki/Free-rider_problem" title="Free-rider problem – Simple English" lang="en-simple" hreflang="en-simple" data-title="Free-rider problem" data-language-autonym="Simple English" data-language-local-name="Simple English" class="interlanguage-link-target"><span>Simple English</span></a></li><li class="interlanguage-link interwiki-fi mw-list-item"><a href="https://fi.wikipedia.org/wiki/Vapaamatkustajan_ongelma" title="Vapaamatkustajan ongelma – Finnish" lang="fi" hreflang="fi" data-title="Vapaamatkustajan ongelma" data-language-autonym="Suomi" data-language-local-name="Finnish" class="interlanguage-link-target"><span>Suomi</span></a></li><li class="interlanguage-link interwiki-sv mw-list-item"><a href="https://sv.wikipedia.org/wiki/Sn%C3%A5lskjutsproblem" title="Snålskjutsproblem – Swedish" lang="sv" hreflang="sv" data-title="Snålskjutsproblem" data-language-autonym="Svenska" data-language-local-name="Swedish" class="interlanguage-link-target"><span>Svenska</span></a></li><li class="interlanguage-link interwiki-tr mw-list-item"><a href="https://tr.wikipedia.org/wiki/Bedavac%C4%B1l%C4%B1k_sorunu" title="Bedavacılık sorunu – Turkish" lang="tr" hreflang="tr" data-title="Bedavacılık sorunu" data-language-autonym="Türkçe" data-language-local-name="Turkish" class="interlanguage-link-target"><span>Türkçe</span></a></li><li class="interlanguage-link interwiki-uk mw-list-item"><a href="https://uk.wikipedia.org/wiki/%D0%A2%D0%B5%D0%BE%D1%80%D1%96%D1%8F_%D0%B1%D0%B5%D0%B7%D0%B1%D1%96%D0%BB%D0%B5%D1%82%D0%BD%D0%B8%D0%BA%D0%B0" title="Теорія безбілетника – Ukrainian" lang="uk" hreflang="uk" data-title="Теорія безбілетника" data-language-autonym="Українська" data-language-local-name="Ukrainian" class="interlanguage-link-target"><span>Українська</span></a></li><li class="interlanguage-link interwiki-ur mw-list-item"><a href="https://ur.wikipedia.org/wiki/%D9%81%D8%B1%DB%8C_%D8%B1%D8%A7%D8%A6%DB%8C%DA%88%D8%B1_%D9%BE%D8%B1%D8%A7%D8%A8%D9%84%D9%85" title="فری رائیڈر پرابلم – Urdu" lang="ur" hreflang="ur" data-title="فری رائیڈر پرابلم" data-language-autonym="اردو" data-language-local-name="Urdu" class="interlanguage-link-target"><span>اردو</span></a></li><li class="interlanguage-link interwiki-vi mw-list-item"><a href="https://vi.wikipedia.org/wiki/K%E1%BA%BB_%C4%91i_xe_kh%C3%B4ng_tr%E1%BA%A3_ti%E1%BB%81n" title="Kẻ đi xe không trả tiền – Vietnamese" lang="vi" hreflang="vi" data-title="Kẻ đi xe không trả tiền" data-language-autonym="Tiếng Việt" data-language-local-name="Vietnamese" class="interlanguage-link-target"><span>Tiếng Việt</span></a></li><li class="interlanguage-link interwiki-zh mw-list-item"><a href="https://zh.wikipedia.org/wiki/%E6%90%AD%E4%BE%BF%E8%BD%A6%E9%97%AE%E9%A2%98" title="搭便车问题 – Chinese" lang="zh" hreflang="zh" data-title="搭便车问题" data-language-autonym="中文" data-language-local-name="Chinese" class="interlanguage-link-target"><span>中文</span></a></li> </ul> <div class="after-portlet after-portlet-lang"><span class="wb-langlinks-edit wb-langlinks-link"><a href="https://www.wikidata.org/wiki/Special:EntityPage/Q499215#sitelinks-wikipedia" title="Edit interlanguage links" class="wbc-editpage">Edit links</a></span></div> </div> </div> </div> </header> <div class="vector-page-toolbar"> <div class="vector-page-toolbar-container"> <div id="left-navigation"> <nav aria-label="Namespaces"> <div id="p-associated-pages" 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For the stock market term, see <a href="/wiki/Free_riding_(stock_market)" class="mw-redirect" title="Free riding (stock market)">Free riding (stock market)</a>. For free rides on freight trains, see <a href="/wiki/Freighthopping" title="Freighthopping">Freighthopping</a>. 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Please do not remove this message until <a href="/wiki/Template:POV#When_to_remove" title="Template:POV">conditions to do so are met</a>.</span> <span class="date-container"><i>(<span class="date">August 2021</span>)</i></span><span class="hide-when-compact"><i> (<small><a href="/wiki/Help:Maintenance_template_removal" title="Help:Maintenance template removal">Learn how and when to remove this message</a></small>)</i></span></div></td></tr></tbody></table> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1251242444"><table class="box-Original_research plainlinks metadata ambox ambox-content ambox-Original_research" role="presentation"><tbody><tr><td class="mbox-image"><div class="mbox-image-div"><span typeof="mw:File"><span><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/b/b4/Ambox_important.svg/40px-Ambox_important.svg.png" decoding="async" width="40" height="40" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/b/b4/Ambox_important.svg/60px-Ambox_important.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/b/b4/Ambox_important.svg/80px-Ambox_important.svg.png 2x" data-file-width="40" data-file-height="40" /></span></span></div></td><td class="mbox-text"><div class="mbox-text-span">This article <b>possibly contains <a href="/wiki/Wikipedia:No_original_research" title="Wikipedia:No original research">original research</a></b>.<span class="hide-when-compact"> Please <a class="external text" href="https://en.wikipedia.org/w/index.php?title=Free-rider_problem&action=edit">improve it</a> by <a href="/wiki/Wikipedia:Verifiability" title="Wikipedia:Verifiability">verifying</a> the claims made and adding <a href="/wiki/Wikipedia:Citing_sources#Inline_citations" title="Wikipedia:Citing sources">inline citations</a>. Statements consisting only of original research should be removed.</span> <span class="date-container"><i>(<span class="date">August 2021</span>)</i></span><span class="hide-when-compact"><i> (<small><a href="/wiki/Help:Maintenance_template_removal" title="Help:Maintenance template removal">Learn how and when to remove this message</a></small>)</i></span></div></td></tr></tbody></table> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1251242444"><table class="box-More_citations_needed plainlinks metadata ambox ambox-content ambox-Refimprove" role="presentation"><tbody><tr><td class="mbox-image"><div class="mbox-image-div"><span typeof="mw:File"><a href="/wiki/File:Question_book-new.svg" class="mw-file-description"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/50px-Question_book-new.svg.png" decoding="async" width="50" height="39" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/75px-Question_book-new.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/100px-Question_book-new.svg.png 2x" data-file-width="512" data-file-height="399" /></a></span></div></td><td class="mbox-text"><div class="mbox-text-span">This article <b>needs additional citations for <a href="/wiki/Wikipedia:Verifiability" title="Wikipedia:Verifiability">verification</a></b>.<span class="hide-when-compact"> Please help <a href="/wiki/Special:EditPage/Free-rider_problem" title="Special:EditPage/Free-rider problem">improve this article</a> by <a href="/wiki/Help:Referencing_for_beginners" title="Help:Referencing for beginners">adding citations to reliable sources</a>. Unsourced material may be challenged and removed.<br /><small><span class="plainlinks"><i>Find sources:</i> <a rel="nofollow" class="external text" href="https://www.google.com/search?as_eq=wikipedia&q=%22Free-rider+problem%22">"Free-rider problem"</a> – <a rel="nofollow" class="external text" href="https://www.google.com/search?tbm=nws&q=%22Free-rider+problem%22+-wikipedia&tbs=ar:1">news</a> <b>·</b> <a rel="nofollow" class="external text" href="https://www.google.com/search?&q=%22Free-rider+problem%22&tbs=bkt:s&tbm=bks">newspapers</a> <b>·</b> <a rel="nofollow" class="external text" href="https://www.google.com/search?tbs=bks:1&q=%22Free-rider+problem%22+-wikipedia">books</a> <b>·</b> <a rel="nofollow" class="external text" href="https://scholar.google.com/scholar?q=%22Free-rider+problem%22">scholar</a> <b>·</b> <a rel="nofollow" class="external text" href="https://www.jstor.org/action/doBasicSearch?Query=%22Free-rider+problem%22&acc=on&wc=on">JSTOR</a></span></small></span> <span class="date-container"><i>(<span class="date">April 2019</span>)</i></span><span class="hide-when-compact"><i> (<small><a href="/wiki/Help:Maintenance_template_removal" title="Help:Maintenance template removal">Learn how and when to remove this message</a></small>)</i></span></div></td></tr></tbody></table> </div> </div><span class="hide-when-compact"><i> (<small><a href="/wiki/Help:Maintenance_template_removal" title="Help:Maintenance template removal">Learn how and when to remove this message</a></small>)</i></span></div></td></tr></tbody></table> <p>In economics, the <b>free-rider problem</b> is a type of <a href="/wiki/Market_failure" title="Market failure">market failure</a> that occurs when those who benefit from resources, <a href="/wiki/Public_good_(economics)" title="Public good (economics)">public goods</a> and <a href="/wiki/Common_pool_resource" class="mw-redirect" title="Common pool resource">common pool resources</a> do not pay for them<sup id="cite_ref-Baumol_1-0" class="reference"><a href="#cite_note-Baumol-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> or under-pay. Examples of such goods are public roads or public libraries or other services or utilities of a communal nature. Free riders are a problem for common pool resources because they may overuse it by not paying for the good (either directly through fees or tolls or indirectly through taxes). Consequently, the common pool resource may be under-produced, overused, or degraded.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> Additionally, it has been shown that despite evidence that people tend to be cooperative by nature (a prosocial behaviour), the presence of free-riders causes cooperation to deteriorate, perpetuating the free-rider problem.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p><p>The free-rider problem in social science is the question of how to limit free riding and its negative effects in these situations. Such an example is the free-rider problem of when <a href="/wiki/Property_right" class="mw-redirect" title="Property right">property rights</a> are not clearly defined and imposed.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup> The free-rider problem is common with <a href="/wiki/Public_good_(economics)" title="Public good (economics)">public goods</a> which are <a href="/wiki/Non-excludability" class="mw-redirect" title="Non-excludability">non-excludable</a> and <a href="/wiki/Rivalry_(economics)" title="Rivalry (economics)">non-rivalrous</a>. Non-excludable means that non-payers cannot be stopped from getting use of or benefits from the good. Non-rival consumption stipulates that the use of a good or service by one consumer does not reduce its availability for another consumer. These characteristics of a public good result in there being little incentive for consumers to contribute to a collective resource as they enjoy its benefits.<sup class="noprint Inline-Template" style="margin-left:0.1em; white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Manual_of_Style/Words_to_watch#Unsupported_attributions" title="Wikipedia:Manual of Style/Words to watch"><span title="The material near this tag may use weasel words or too-vague attribution. (August 2021)">according to whom?</span></a></i>]</sup> </p><p>A free rider may enjoy a non-excludable and non-rivalrous good such as a government-provided road system without contributing to paying for it. Another example is if a coastal town builds a lighthouse, ships from many regions and countries will benefit from it, even though they are not contributing to its costs, and are thus "free riding" on the navigation aid. A third example of non-excludable and non-rivalrous consumption would be a crowd watching fireworks. The number of viewers, whether they paid for the entertainment or not, does not diminish the fireworks as a resource. In each of these examples, the cost of excluding non-payers would be prohibitive, while the collective consumption of the resource does not decrease how much is available.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (August 2021)">citation needed</span></a></i>]</sup> </p><p>Although the term "free rider" was first used in economic theory of public goods, similar concepts have been applied to other contexts, including <a href="/wiki/Collective_bargaining" title="Collective bargaining">collective bargaining</a>, <a href="/wiki/Antitrust_law" class="mw-redirect" title="Antitrust law">antitrust law</a>, psychology, <a href="/wiki/Political_science" title="Political science">political science</a>, and <a href="/wiki/Vaccine" title="Vaccine">vaccines</a>.<sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> For example, some individuals in a team or community may reduce their contributions or performance if they believe that one or more other members of the group may free ride.<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> </p><p>The economic free-rider problem is equally pertinent within the realm of global politics, often presenting challenges in international cooperation and collective action. In global politics, states are confronted with scenarios where certain actors reap the benefits of collective goods or actions without bearing the costs or contributing to the efforts required to achieve these shared objectives. This phenomenon creates imbalances and hampers cooperative endeavors, particularly in addressing transnational challenges like climate change, global security, or humanitarian crises. For instance, in discussions on <a href="/wiki/Climate_change_mitigation" title="Climate change mitigation">climate change mitigation</a>, countries with lesser contributions to greenhouse gas emissions might still benefit from global efforts to reduce emissions, enjoying a stable climate without proportionally shouldering the costs of emission reductions. This creates a disparity between states' contributions and their gains, leading to challenges in negotiating and implementing effective international agreements. The economic free-rider problem's manifestation in global politics underscores the complexities and obstacles encountered in fostering collective action and equitable burden-sharing among nations to address pressing global issues.<sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="Incentive">Incentive</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Free-rider_problem&action=edit&section=1" title="Edit section: Incentive"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The underlying incentive which generates the free-rider problem can be explained<sup class="noprint Inline-Template" style="margin-left:0.1em; white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Avoid_weasel_words" class="mw-redirect" title="Wikipedia:Avoid weasel words"><span title="Who says this? (August 2021)">weasel words</span></a></i>]</sup> via the application of the <a href="/wiki/Prisoner%27s_dilemma" title="Prisoner's dilemma">Prisoner's dilemma</a>,<sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> within the context of contributing to a public good. Suppose two people were to split a contribution to a public service (such as for a fire station) with society benefiting from their contribution. According to the Prisoner's dilemma, certain conclusions can be drawn from the results of this scenario. If both parties donate, they are out of pocket and society benefits. If one party doesn't pay (in the hopes that someone else will) they become a free-rider, and the other will have to cover the cost. If the other party also decides to become a free-rider and neither pay, then society receives no benefit. This demonstrates<sup class="noprint Inline-Template" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Disputed_statement" class="mw-redirect" title="Wikipedia:Disputed statement"><span title="This claim has reliable sources with contradicting facts (August 2021)">disputed</span></a> – <a href="/wiki/Talk:Free-rider_problem" title="Talk:Free-rider problem">discuss</a></i>]</sup> that the free-rider problem is generated by individuals' willingness to let others pay when they themselves can receive the benefit at zero cost.<sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup> This is reinforced by the economic theory of <a href="/wiki/Rational_choice_theory" class="mw-redirect" title="Rational choice theory">rational choice</a>, stating that humans make choices which they infer will provide them with the greatest benefit. Therefore, if a service or resource is offered for free, then a consumer will not pay for it.<sup id="cite_ref-11" class="reference"><a href="#cite_note-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Economic_issues">Economic issues</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Free-rider_problem&action=edit&section=2" title="Edit section: Economic issues"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Free riding is a problem of <a href="/wiki/Pareto_efficiency" title="Pareto efficiency">economic inefficiency</a> when it leads to the underproduction or overconsumption of a good. For example, when people are asked how much they value a particular <a href="/wiki/Public_good_(economics)" title="Public good (economics)">public good</a>, with that value measured in terms of how much money they would be willing to pay, their tendency is to under-report their valuations.<sup id="cite_ref-Economics_and_the_Environment_12-0" class="reference"><a href="#cite_note-Economics_and_the_Environment-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> Goods that are subject to free riding are usually characterized by: the inability to exclude non-payers, its consumption by an individual does not impact the availability for others and that the resource in question must be produced and/or maintained. Indeed, if non-payers can be excluded by some mechanism, the good may be transformed into a <a href="/wiki/Club_good" title="Club good">club good</a> (e.g. if an overused, congested public road is converted to a toll road, or if a free public museum turns into a private, admission fee-charging museum). </p><p>Free riders become a problem when non-excludable goods are also <a href="/wiki/Rivalry_(economics)" title="Rivalry (economics)">rivalrous</a>. These goods, categorized as <a href="/wiki/Common-pool_resources" class="mw-redirect" title="Common-pool resources">common-pool resources</a>, are characterized by overconsumption when common property regimes are not implemented.<sup id="cite_ref-Understanding_Institutional_Diversity_13-0" class="reference"><a href="#cite_note-Understanding_Institutional_Diversity-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup> Not only can consumers of common-property goods benefit without payment, but consumption by one imposes an <a href="/wiki/Opportunity_cost" title="Opportunity cost">opportunity cost</a> on others. The theory of '<a href="/wiki/Tragedy_of_the_commons" title="Tragedy of the commons">Tragedy of the commons</a>' highlights this, in which each consumer acts to maximize their own utility and thereby relies on others to cut back their own consumption. This will lead to overconsumption and even possibly exhaustion or destruction of the good. If too many people start to free ride, a system or service will eventually not have enough resources to operate. Free-riding is experienced when the production of goods does not consider the <a href="/wiki/Externality" title="Externality">external costs</a>, particularly the use of <a href="/wiki/Ecosystem_services" class="mw-redirect" title="Ecosystem services">ecosystem services</a>. </p><p>An example of this is global climate change initiatives. As climate change is a global issue and there is no global regime to manage the climate, the benefits of reduced emissions in one country will extend beyond their own countries' borders and impact countries worldwide. However, this has resulted in some countries acting in their own self-interest, limiting their own efforts and free-riding on the work of others. In some countries, citizens and governments do not wish to contribute to the associated effort and costs of mitigation, as they are able to free-ride on the efforts of others.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (August 2021)">citation needed</span></a></i>]</sup> This free rider problem also raises questions in regards to the fairness and ethicalness of these practices, as countries most likely to suffer the <a href="/wiki/Effects_of_climate_change" title="Effects of climate change">consequences of climate change</a>, are also those who typically emit the least greenhouse gases and have fewer economic resources to contribute to the efforts, such as the small island country of <a href="/wiki/Tuvalu" title="Tuvalu">Tuvalu</a>.<sup id="cite_ref-14" class="reference"><a href="#cite_note-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup><sup class="noprint Inline-Template" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citing_sources#What_information_to_include" title="Wikipedia:Citing sources"><span title="A complete citation is needed. (August 2021)">full citation needed</span></a></i>]</sup> </p><p>Theodore Groves and John Ledyard believe that <a href="/wiki/Pareto_optimal" class="mw-redirect" title="Pareto optimal">Pareto-optimal</a> allocation of resources in relation to public goods is not compatible with the fundamental incentives belonging to individuals.<sup id="cite_ref-15" class="reference"><a href="#cite_note-15"><span class="cite-bracket">[</span>15<span class="cite-bracket">]</span></a></sup> Therefore, the free-rider problem, according to most scholars, is expected to be an ongoing public issue.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (August 2021)">citation needed</span></a></i>]</sup> For example, <a href="/wiki/Albert_O._Hirschman" title="Albert O. Hirschman">Albert O. Hirschman</a> believed that the free-rider problem is a cyclical one for <a href="/wiki/Capitalist_economics" class="mw-redirect" title="Capitalist economics">capitalist economies</a>. Hirschman considers the free-rider problem to be related to the <a href="/wiki/Shifting_interest" class="mw-redirect" title="Shifting interest">shifting interests</a> of people. When stress levels rise on individuals in the workplace and many fear losing their employment, they devote less of their <a href="/wiki/Human_capital" title="Human capital">human capital</a> to the public sphere. When public needs then increase, disenchanted consumers become more interested in <a href="/wiki/Collective_action" title="Collective action">collective action</a> projects. This leads individuals to organize themselves in various groups and the results are attempts to solve public problems. In effect this reverses the momentum of free riding. Activities often seen as costs in models focused on self-interest are instead seen as benefits for the individuals who were previously dissatisfied consumers seeking their private interests.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (August 2021)">citation needed</span></a></i>]</sup> </p><p>This cycle will reset itself because as individuals' work for public benefit becomes less praiseworthy, supporters' level of commitment to collective action projects will decrease. With the decrease in support, many will return to private interests, which with time resets the cycle.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (August 2021)">citation needed</span></a></i>]</sup> Supporters of Hirschman's model insist that the important factor in motivating people is that they are compelled by a leader's call to <a href="/wiki/Altruism" title="Altruism">altruism</a>. In <a href="/wiki/John_F._Kennedy" title="John F. Kennedy">John F. Kennedy</a>'s <a href="/wiki/John_F._Kennedy_1961_presidential_inauguration" class="mw-redirect" title="John F. Kennedy 1961 presidential inauguration">inaugural address</a> he implored the American people to "ask not what your country can do for you; ask what you can do for your country." Some economists (for example, <a href="/wiki/Milton_Friedman" title="Milton Friedman">Milton Friedman</a>) find these calls to altruism to be nonsensical. Scholars like Friedman do not think the free-rider problem is part of an unchangeable <a href="/wiki/Virtuous_circle_and_vicious_circle" class="mw-redirect" title="Virtuous circle and vicious circle">virtuous or vicious circle</a>, but instead seek possible solutions or attempts at improvement elsewhere.<sup id="cite_ref-16" class="reference"><a href="#cite_note-16"><span class="cite-bracket">[</span>16<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Economic_and_political_solutions">Economic and political solutions</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Free-rider_problem&action=edit&section=3" title="Edit section: Economic and political solutions"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading3"><h3 id="Assurance_contracts">Assurance contracts</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Free-rider_problem&action=edit&section=4" title="Edit section: Assurance contracts"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Assurance_contract" title="Assurance contract">Assurance contract</a></div> <p>An assurance contract is a contract in which participants make a binding pledge to contribute to building a public good, contingent on a quorum of a predetermined size being reached. Otherwise the good is not provided and any monetary contributions are refunded.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (August 2021)">citation needed</span></a></i>]</sup> </p><p>A <a href="/wiki/Dominant_assurance_contract" class="mw-redirect" title="Dominant assurance contract">dominant assurance contract</a> is a variation in which an entrepreneur creates the contract and refunds the initial pledge plus an additional sum of money if the quorum is not reached. The entrepreneur profits by collecting a fee if the quorum is reached and the good is provided. In <a href="/wiki/Game_theory" title="Game theory">game-theoretic</a> terms this makes pledging to build the public good a dominant strategy: the best move is to pledge to the contract regardless of the actions of others.<sup id="cite_ref-17" class="reference"><a href="#cite_note-17"><span class="cite-bracket">[</span>17<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Coasian_solution">Coasian solution</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Free-rider_problem&action=edit&section=5" title="Edit section: Coasian solution"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>A <a href="/wiki/Coasian_solution" class="mw-redirect" title="Coasian solution">Coasian solution</a>, named for the economist <a href="/wiki/Ronald_Coase" title="Ronald Coase">Ronald Coase</a>, proposes that potential beneficiaries of a public good can negotiate to pool their resources and create it, based on each party's self-interested willingness to pay. His treatise, <i><a href="/wiki/The_Problem_of_Social_Cost" title="The Problem of Social Cost">The Problem of Social Cost</a></i> (1960), argued that if the <a href="/wiki/Transaction_cost" title="Transaction cost">transaction costs</a> between potential beneficiaries of a public good are low—that it is easy for potential beneficiaries to find each other and organize pooling their resources based upon the good's value to each of them—that public goods could be produced without government action.<sup id="cite_ref-Coase1960_18-0" class="reference"><a href="#cite_note-Coase1960-18"><span class="cite-bracket">[</span>18<span class="cite-bracket">]</span></a></sup> </p><p> Much later, Coase himself wrote that while what had become known as the Coase Theorem had explored the implications of zero-transaction costs, he had actually intended to use this construct as a stepping stone to understand the real world of positive transaction costs, corporations, legal systems and government actions:<sup id="cite_ref-19" class="reference"><a href="#cite_note-19"><span class="cite-bracket">[</span>19<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-Coase1988_1_20-0" class="reference"><a href="#cite_note-Coase1988_1-20"><span class="cite-bracket">[</span>20<span class="cite-bracket">]</span></a></sup></p><blockquote><p>I examined what would happen in a world in which transaction costs were assumed to be zero. My aim in doing so was not to describe what life would be like in such a world but to provide a simple setting in which to develop the analysis and, what was even more important, to make clear the fundamental role which transaction costs do, and should, play in the fashioning of the institutions which make up the economic system.</p></blockquote><p>Coase also wrote:</p><blockquote><p>The world of zero transaction costs has often been described as a Coasian world. Nothing could be further from the truth. It is the world of modern economic theory, one which I was hoping to persuade economists to leave. What I did in "The Problem of Social Cost" was simply to shed light on some of its properties. I argued in such a world the allocation of resources would be independent of the legal position, a result which Stigler dubbed the "Coase theorem".<sup id="cite_ref-Coase1988_2_21-0" class="reference"><a href="#cite_note-Coase1988_2-21"><span class="cite-bracket">[</span>21<span class="cite-bracket">]</span></a></sup></p></blockquote><p>Thus, while Coase himself appears to have considered the "Coase theorem" and Coasian solutions as simplified constructs to ultimately consider the real 20th-century world of governments and laws and corporations, these concepts have become attached to a world where transaction costs were much lower, and government intervention would unquestionably be less necessary. </p><p>A minor alternative, especially for information goods, is for the producer to refuse to release a good to the public until payment to cover costs is met. Author <a href="/wiki/Stephen_King" title="Stephen King">Stephen King</a>, for instance, authored chapters of a new novel downloadable for free on his website while stating that he would not release subsequent chapters unless a certain amount of money was raised. Sometimes dubbed <i>holding for ransom</i>, this method of public goods production is a modern application of the <a href="/wiki/Street_performer_protocol" class="mw-redirect" title="Street performer protocol">street performer protocol</a> for public goods production. Unlike assurance contracts, its success relies largely on social norms to ensure (to some extent) that the threshold is reached and partial contributions are not wasted.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (August 2021)">citation needed</span></a></i>]</sup><sup class="noprint Inline-Template" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:No_original_research" title="Wikipedia:No original research"><span title="The material near this tag possibly contains original research. (August 2021)">original research?</span></a></i>]</sup> </p><p>One of the purest Coasian solutions today is the new phenomenon of Internet <a href="/wiki/Crowdfunding" title="Crowdfunding">crowdfunding</a>.<sup id="cite_ref-22" class="reference"><a href="#cite_note-22"><span class="cite-bracket">[</span>22<span class="cite-bracket">]</span></a></sup><sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (August 2021)">citation needed</span></a></i>]</sup> Here rules are enforced by computer algorithms and legal contracts as well as social pressure. For example, on the <a href="/wiki/Kickstarter" title="Kickstarter">Kickstarter</a> site, each funder authorizes a credit card purchase to buy a new product or receive other promised benefits, but no money changes hands until the funding goal is met.<sup id="cite_ref-kick_23-0" class="reference"><a href="#cite_note-kick-23"><span class="cite-bracket">[</span>23<span class="cite-bracket">]</span></a></sup><sup class="noprint Inline-Template" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:No_original_research" title="Wikipedia:No original research"><span title="The material near this tag possibly contains original research. (August 2021)">original research?</span></a></i>]</sup> Because automation and the Internet so reduce the transaction costs for pooling resources, project goals of only a few hundred dollars are frequently crowdfunded, far below the costs of soliciting traditional investors.<sup class="noprint Inline-Template" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:No_original_research" title="Wikipedia:No original research"><span title="The material near this tag possibly contains original research. (August 2021)">original research?</span></a></i>]</sup> </p> <div class="mw-heading mw-heading3"><h3 id="Introducing_an_exclusion_mechanism_(club_goods)"><span id="Introducing_an_exclusion_mechanism_.28club_goods.29"></span>Introducing an exclusion mechanism (club goods)</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Free-rider_problem&action=edit&section=6" title="Edit section: Introducing an exclusion mechanism (club goods)"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1251242444"><table class="box-More_citations_needed plainlinks metadata ambox ambox-content ambox-Refimprove" role="presentation"><tbody><tr><td class="mbox-image"><div class="mbox-image-div"><span typeof="mw:File"><a href="/wiki/File:Question_book-new.svg" class="mw-file-description"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/50px-Question_book-new.svg.png" decoding="async" width="50" height="39" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/75px-Question_book-new.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/100px-Question_book-new.svg.png 2x" data-file-width="512" data-file-height="399" /></a></span></div></td><td class="mbox-text"><div class="mbox-text-span">This section <b>needs additional citations for <a href="/wiki/Wikipedia:Verifiability" title="Wikipedia:Verifiability">verification</a></b>.<span class="hide-when-compact"> Please help <a href="/wiki/Special:EditPage/Free-rider_problem" title="Special:EditPage/Free-rider problem">improve this article</a> by <a href="/wiki/Help:Referencing_for_beginners" title="Help:Referencing for beginners">adding citations to reliable sources</a> in this section. Unsourced material may be challenged and removed.<br /><small><span class="plainlinks"><i>Find sources:</i> <a rel="nofollow" class="external text" href="https://www.google.com/search?as_eq=wikipedia&q=%22Free-rider+problem%22">"Free-rider problem"</a> – <a rel="nofollow" class="external text" href="https://www.google.com/search?tbm=nws&q=%22Free-rider+problem%22+-wikipedia&tbs=ar:1">news</a> <b>·</b> <a rel="nofollow" class="external text" href="https://www.google.com/search?&q=%22Free-rider+problem%22&tbs=bkt:s&tbm=bks">newspapers</a> <b>·</b> <a rel="nofollow" class="external text" href="https://www.google.com/search?tbs=bks:1&q=%22Free-rider+problem%22+-wikipedia">books</a> <b>·</b> <a rel="nofollow" class="external text" href="https://scholar.google.com/scholar?q=%22Free-rider+problem%22">scholar</a> <b>·</b> <a rel="nofollow" class="external text" href="https://www.jstor.org/action/doBasicSearch?Query=%22Free-rider+problem%22&acc=on&wc=on">JSTOR</a></span></small></span> <span class="date-container"><i>(<span class="date">August 2021</span>)</i></span><span class="hide-when-compact"><i> (<small><a href="/wiki/Help:Maintenance_template_removal" title="Help:Maintenance template removal">Learn how and when to remove this message</a></small>)</i></span></div></td></tr></tbody></table> <p>Another solution, which has evolved for information goods, is to introduce exclusion mechanisms which turn public goods into <a href="/wiki/Club_good" title="Club good">club goods</a>. One well-known example is <a href="/wiki/Copyright" title="Copyright">copyright</a> and <a href="/wiki/Patent" title="Patent">patent</a> laws. These laws, which in the 20th century came to be called <a href="/wiki/Intellectual_property" title="Intellectual property">intellectual property</a> laws, attempt to remove the natural non-excludability by prohibiting reproduction of the good. Although they can address the free rider problem, the downside of these laws is that they imply private monopoly power and thus are not <a href="/wiki/Pareto-optimal" class="mw-redirect" title="Pareto-optimal">Pareto-optimal</a>. </p><p>For example, in the United States, the patent rights given to pharmaceutical companies encourage them to charge high prices (above <a href="/wiki/Marginal_cost" title="Marginal cost">marginal cost</a>) and to advertise to convince patients to persuade their doctors to prescribe the drugs.<sup class="noprint Inline-Template" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Accuracy_dispute#Disputed_statement" title="Wikipedia:Accuracy dispute"><span title="Advertising is done by companies that don't have patents, too. The choice to advertise is completely unrelated to patents (August 2011)">dubious</span></a> – <a href="/wiki/Talk:Free-rider_problem#Dubious" title="Talk:Free-rider problem">discuss</a></i>]</sup> Likewise, copyright provides an incentive for a publisher to act like <a href="/wiki/The_Dog_in_the_Manger" title="The Dog in the Manger">The Dog in the Manger</a>, taking older works <a href="/wiki/Out_of_print" title="Out of print">out of print</a> so as not to cannibalize revenue from the publisher's own new works. Examples from the entertainment industry include <a href="/wiki/Walt_Disney_Studios_Home_Entertainment" title="Walt Disney Studios Home Entertainment">Walt Disney Studios Home Entertainment</a>'s "<a href="/wiki/Disney_Vault" title="Disney Vault">vault</a>" sales practice. Examples from the computer software industry include <a href="/wiki/Microsoft" title="Microsoft">Microsoft</a>'s decision to pull <a href="/wiki/Windows_XP" title="Windows XP">Windows XP</a> from the market in mid-2008 to drive revenue from the widely criticized <a href="/wiki/Windows_Vista" title="Windows Vista">Windows Vista</a> operating system.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (March 2021)">citation needed</span></a></i>]</sup> </p><p>The laws also end up encouraging patent and copyright owners to sue even mild imitators in court and to lobby for the extension of the term of the exclusive rights in a form of <a href="/wiki/Rent_seeking" class="mw-redirect" title="Rent seeking">rent seeking</a>. </p><p>These problems with the club-good mechanism arise because the underlying <a href="/wiki/Marginal_cost" title="Marginal cost">marginal cost</a> of giving the good to more people is low or zero, but, because of the limits of <a href="/wiki/Price_discrimination" title="Price discrimination">price discrimination</a> those who are unwilling or unable to pay a profit-maximizing price do not gain access to the good. If the costs of the exclusion mechanism are not higher than the gain from the collaboration, club goods can emerge naturally. <a href="/wiki/James_M._Buchanan" title="James M. Buchanan">James M. Buchanan</a> showed in his seminal paper that clubs can be an efficient alternative to government interventions.<sup id="cite_ref-24" class="reference"><a href="#cite_note-24"><span class="cite-bracket">[</span>24<span class="cite-bracket">]</span></a></sup> On the other hand, the inefficiencies and inequities of club goods exclusions sometimes cause potentially excludable club goods to be treated as public goods, and their production financed by some other mechanism. Examples of such "natural" club goods include <a href="/wiki/Natural_monopoly" title="Natural monopoly">natural monopolies</a> with very high fixed costs, private golf courses, cinemas, cable television and social clubs. This explains why many such goods are often provided or subsidized by governments, co-operatives or volunteer associations, rather than being left to be supplied by profit-minded entrepreneurs. These goods are often known as <i>social goods</i>. <a href="/wiki/Joseph_Schumpeter" title="Joseph Schumpeter">Joseph Schumpeter</a> claimed that the "excess profits", or profits over normal profit, generated by the copyright or patent monopoly will attract competitors that will make technological innovations and thereby end the monopoly. This is a continual process referred to as "Schumpeterian <a href="/wiki/Creative_destruction" title="Creative destruction">creative destruction</a>", and its applicability to different types of public goods is a source of some controversy. The supporters of the theory point to the case of Microsoft, for example, which has been increasing its prices (or lowering its products' quality), predicting that these practices will make increased market shares for Linux and Apple largely inevitable.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (May 2011)">citation needed</span></a></i>]</sup> </p><p>A nation can be seen as a "club" whose members are its citizens. Government would then be the manager of this club. This is further studied in the theory of the state.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (January 2020)">citation needed</span></a></i>]</sup> </p> <div class="mw-heading mw-heading3"><h3 id="Non-altruistic_social_sanctions_(common_property_regimes)"><span id="Non-altruistic_social_sanctions_.28common_property_regimes.29"></span>Non-altruistic social sanctions (common property regimes)</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Free-rider_problem&action=edit&section=7" title="Edit section: Non-altruistic social sanctions (common property regimes)"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Often on the foundation of game theory, experimental literature suggests that free-riding situations can be improved without any state intervention by seeking to measure the effects of various forms of social sanctions. Peer-to-peer punishment, that is, when members sanction other members that do not contribute to the common pool resource by inflicting a cost on "free-riders", is considered sufficient to establish and maintain cooperation.<sup id="cite_ref-25" class="reference"><a href="#cite_note-25"><span class="cite-bracket">[</span>25<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-26" class="reference"><a href="#cite_note-26"><span class="cite-bracket">[</span>26<span class="cite-bracket">]</span></a></sup> </p><p>Social actions come at a cost to the punisher, which discourages individuals from taking action to punish the free-rider. Therefore, punishers often need to be rewarded for following through with their punishment for the resource to be effectively managed. Unlike a prisoner's dilemma where the prisoners are prohibited from communicating and strategizing, people can get together to form "common property regimes" in which the group weighs the costs and benefits of rewarding individuals for sanctioning free riders.<sup id="cite_ref-Understanding_Institutional_Diversity_13-1" class="reference"><a href="#cite_note-Understanding_Institutional_Diversity-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup> So long as the benefits of preserving the resource outweigh the cost of communication and enforcement, members often compensate punishers for sanctioning free riders.<sup id="cite_ref-Governing_the_Commons_27-0" class="reference"><a href="#cite_note-Governing_the_Commons-27"><span class="cite-bracket">[</span>27<span class="cite-bracket">]</span></a></sup> While the outcome is not <a href="/wiki/Pareto-optimal" class="mw-redirect" title="Pareto-optimal">Pareto-optimal</a>, as the group has the additional cost of paying for enforcement, it is often less costly than letting the resource deplete. In the limiting case, where the costs of bargaining and enforcement approach zero, the setup becomes Coasian as the solution approaches the Pareto-optimal solution. </p><p>Both punishment and regulation by the state work relatively badly under imperfect information, where people cannot observe the behavior of others.<sup id="cite_ref-28" class="reference"><a href="#cite_note-28"><span class="cite-bracket">[</span>28<span class="cite-bracket">]</span></a></sup> <sup id="cite_ref-Governing_the_Commons_27-1" class="reference"><a href="#cite_note-Governing_the_Commons-27"><span class="cite-bracket">[</span>27<span class="cite-bracket">]</span></a></sup> Often common property regimes which members establish through bargaining have more information about the specific common pool resource which they are managing than outsiders. For this reason, and because common property regimes can avoid the <a href="/wiki/Principal-agent_problem" class="mw-redirect" title="Principal-agent problem">principal-agent problem</a>, the specific local knowledge within common property regimes typically enables them to outperform regulations designed by outside technical experts.<sup id="cite_ref-Governing_the_Commons_27-2" class="reference"><a href="#cite_note-Governing_the_Commons-27"><span class="cite-bracket">[</span>27<span class="cite-bracket">]</span></a></sup> Nevertheless, the best performance is typically achieved when people in common property regimes consult with governments and technical experts while deciding on the rules and design of their firm, thereby combining local and technical knowledge.<sup id="cite_ref-Governing_the_Commons_27-3" class="reference"><a href="#cite_note-Governing_the_Commons-27"><span class="cite-bracket">[</span>27<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-Understanding_Institutional_Diversity_13-2" class="reference"><a href="#cite_note-Understanding_Institutional_Diversity-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Altruistic_solutions">Altruistic solutions</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Free-rider_problem&action=edit&section=8" title="Edit section: Altruistic solutions"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading3"><h3 id="Social_norms">Social norms</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Free-rider_problem&action=edit&section=9" title="Edit section: Social norms"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Psychologically, humans are fundamentally considered as free-riders by others only when benefits are consumed while contributions are withheld. Indicating that in all cultures free-riders are recognised, however, cultural differences exist in the degree of tolerance and how these people dealt with them.<sup id="cite_ref-29" class="reference"><a href="#cite_note-29"><span class="cite-bracket">[</span>29<span class="cite-bracket">]</span></a></sup> The impact of <a href="/wiki/Social_norm" title="Social norm">social norms</a> on the free-rider problem differs between cultural contexts, which may lead to a variance between results in research on the free-rider problem when applied cross-culturally. Social norms impact on privately and voluntarily provided public goods; however, is considered to have some level of effect on the problem in many contexts. Social sanctioning, for example, is a norm in and of itself that has a high degree of universality.<sup id="cite_ref-30" class="reference"><a href="#cite_note-30"><span class="cite-bracket">[</span>30<span class="cite-bracket">]</span></a></sup> The goal of much research on the topic of social sanctioning and its effect on the free-rider problem is to explain the altruistic motivation that is observed in various societies. </p><p>Free riding is often thought of only in terms of positive and negative externalities felt by the public. The impact of social norms on actions and motivations related to <a href="/wiki/Altruism" title="Altruism">altruism</a> are often underestimated in economic solutions and the models from which they are derived.<sup id="cite_ref-31" class="reference"><a href="#cite_note-31"><span class="cite-bracket">[</span>31<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Altruistic_social_sanctions">Altruistic social sanctions</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Free-rider_problem&action=edit&section=10" title="Edit section: Altruistic social sanctions"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>While non-altruistic social sanctions occur when people establish common property regimes, people sometimes punish free-riders even without being rewarded. The exact nature of motivation remains to be explored.<sup id="cite_ref-32" class="reference"><a href="#cite_note-32"><span class="cite-bracket">[</span>32<span class="cite-bracket">]</span></a></sup> Whether costly punishment can explain cooperation is disputed.<sup id="cite_ref-33" class="reference"><a href="#cite_note-33"><span class="cite-bracket">[</span>33<span class="cite-bracket">]</span></a></sup> Recent research finds that costly punishment is less effective in real world environments. </p><p>Other research finds that social sanctions cannot be generalized as strategic in the context of public goods. Preferences between secret sanctions (untraceable sanctions between players in the game) and standard sanctions (traceable sanctions including feedback between players in an otherwise identical environment) on free riders did not vary significantly. Rather some individuals preferred to sanction others regardless of secrecy.<sup id="cite_ref-34" class="reference"><a href="#cite_note-34"><span class="cite-bracket">[</span>34<span class="cite-bracket">]</span></a></sup> Other research build on the findings of <a href="/wiki/Behavioral_economics" title="Behavioral economics">behavioral economics</a>, finds that in a dilemmatic donation game, donators are motivated by the fear of loss. In the game donators' deposits were only refunded if the donators always punish free riding and non-commitment among other individuals. Pool-punishment (everyone loses their deposit if one donator doesn't punish the free rider) provided more stable results than punishment without consideration of the consensus of the group. Individual-to-individual peer punishment led to less consistently applied social sanctions.<sup id="cite_ref-35" class="reference"><a href="#cite_note-35"><span class="cite-bracket">[</span>35<span class="cite-bracket">]</span></a></sup> Collectively this research, although it is experimental in nature, may prove useful when applied in public policy decisions seeking to improve free-rider problems within society. </p> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Free-rider_problem&action=edit&section=11" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1184024115">.mw-parser-output .div-col{margin-top:0.3em;column-width:30em}.mw-parser-output .div-col-small{font-size:90%}.mw-parser-output .div-col-rules{column-rule:1px solid #aaa}.mw-parser-output .div-col dl,.mw-parser-output .div-col ol,.mw-parser-output .div-col ul{margin-top:0}.mw-parser-output .div-col li,.mw-parser-output .div-col dd{page-break-inside:avoid;break-inside:avoid-column}</style><div class="div-col" style="column-width: 26em;"> <ul><li><a href="/wiki/Common_pool_resource" class="mw-redirect" title="Common pool resource">Common pool resource</a></li> <li><a href="/wiki/Economic_surplus" title="Economic surplus">Economic surplus</a></li> <li><a href="/wiki/Freedom_Riders" title="Freedom Riders">Freedom Riders</a></li> <li><a href="/wiki/Forced_rider" title="Forced rider">Forced rider</a></li> <li><a href="/wiki/Leech_(computing)" class="mw-redirect" title="Leech (computing)">Leech (computing)</a></li> <li><a href="/wiki/The_Logic_of_Collective_Action" title="The Logic of Collective Action">The Logic of Collective Action</a></li> <li><a href="/wiki/Moral_hazard" title="Moral hazard">Moral hazard</a></li> <li><a href="/wiki/Parasitism_(social_offense)" class="mw-redirect" title="Parasitism (social offense)">Parasitism (social offense)</a></li> <li><a href="/wiki/Prisoner%27s_dilemma" title="Prisoner's dilemma">Prisoner's dilemma</a></li> <li><a href="/wiki/Tragedy_of_the_commons" title="Tragedy of the commons">Tragedy of the commons</a></li></ul> </div> <div class="mw-heading mw-heading2"><h2 id="Notes">Notes</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Free-rider_problem&action=edit&section=12" title="Edit section: Notes"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist"> <div class="mw-references-wrap mw-references-columns"><ol class="references"> <li id="cite_note-Baumol-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-Baumol_1-0">^</a></b></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output 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Cambridge, Massachusetts: Harvard University Press.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Welfare+Economics+and+the+Theory+of+the+State&rft.place=Cambridge%2C+Massachusetts&rft.pub=Harvard+University+Press&rft.date=1952&rft.aulast=Baumol&rft.aufirst=William&rfr_id=info%3Asid%2Fen.wikipedia.org%3AFree-rider+problem" class="Z3988"></span></span> </li> <li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text">Rittenberg and Tregarthen. <i>Principles of Microeconomics</i>, <a rel="nofollow" class="external text" href="http://www.saylor.org/site/wp-content/uploads/2012/06/ECON101-3.2.pdf">Chapter 6, Section 4. p. 2</a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20130319152336/http://www.saylor.org/site/wp-content/uploads/2012/06/ECON101-3.2.pdf">Archived</a> 19 March 2013 at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a>. 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New York: Cambridge University Press. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/052130184X" title="Special:BookSources/052130184X"><bdi>052130184X</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=The+Theory+of+Externalities%2C+Public+Goods+and+Club+Goods&rft.place=New+York&rft.pub=Cambridge+University+Press&rft.date=1986&rft.isbn=052130184X&rft.aulast=Cornes&rft.aufirst=Richard&rft.au=Sandler%2C+Todd&rfr_id=info%3Asid%2Fen.wikipedia.org%3AFree-rider+problem" class="Z3988"></span></li> <li><a href="/wiki/William_D._Nordhaus" class="mw-redirect" title="William D. Nordhaus">William D. Nordhaus</a>, "A New Solution: the Climate Club" (a review of <a href="/wiki/Gernot_Wagner" title="Gernot Wagner">Gernot Wagner</a> and <a href="/wiki/Martin_L._Weitzman" class="mw-redirect" title="Martin L. Weitzman">Martin L. Weitzman</a>, <i>Climate Shock: The Economic Consequences of a Hotter Planet</i>, <a href="/wiki/Princeton_University_Press" title="Princeton University Press">Princeton University Press</a>, 250 pp, $27.95), <i><a href="/wiki/The_New_York_Review_of_Books" title="The New York Review of Books">The New York Review of Books</a></i>, vol. LXII, no. 10 (June 4, 2015), pp. 36–39.</li> <li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFVenugopal2005" class="citation journal cs1">Venugopal, Joshi (2005). "Drug imports: the free-rider paradox". <i>Express Pharma Pulse</i>. <b>11</b> (9): 8.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Express+Pharma+Pulse&rft.atitle=Drug+imports%3A+the+free-rider+paradox&rft.volume=11&rft.issue=9&rft.pages=8&rft.date=2005&rft.aulast=Venugopal&rft.aufirst=Joshi&rfr_id=info%3Asid%2Fen.wikipedia.org%3AFree-rider+problem" class="Z3988"></span></li> <li>P. Oliver – <a rel="nofollow" class="external text" href="https://web.archive.org/web/20160304201349/http://www.ssc.wisc.edu/~oliver/Soc626/Lectures/CollAct%20TheoryNew.pdf">Sociology 626</a> published by <a rel="nofollow" class="external text" href="https://www.ssc.wisc.edu/sscc/">Social Science Computing Cooperative</a> <a href="/wiki/University_of_Wisconsin" class="mw-redirect" title="University of Wisconsin">University of Wisconsin</a></li></ul> <div class="navbox-styles"><style data-mw-deduplicate="TemplateStyles:r1129693374">.mw-parser-output .hlist dl,.mw-parser-output .hlist ol,.mw-parser-output .hlist ul{margin:0;padding:0}.mw-parser-output .hlist dd,.mw-parser-output .hlist dt,.mw-parser-output .hlist li{margin:0;display:inline}.mw-parser-output .hlist.inline,.mw-parser-output .hlist.inline dl,.mw-parser-output .hlist.inline ol,.mw-parser-output .hlist.inline ul,.mw-parser-output .hlist dl dl,.mw-parser-output .hlist dl ol,.mw-parser-output .hlist dl ul,.mw-parser-output .hlist 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.navbox{display:none!important}}</style><style data-mw-deduplicate="TemplateStyles:r886047488">.mw-parser-output .nobold{font-weight:normal}</style></div><div role="navigation" class="navbox" aria-labelledby="Property" style="padding:3px"><table class="nowraplinks hlist mw-collapsible mw-collapsed navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1239400231">.mw-parser-output .navbar{display:inline;font-size:88%;font-weight:normal}.mw-parser-output .navbar-collapse{float:left;text-align:left}.mw-parser-output .navbar-boxtext{word-spacing:0}.mw-parser-output .navbar ul{display:inline-block;white-space:nowrap;line-height:inherit}.mw-parser-output .navbar-brackets::before{margin-right:-0.125em;content:"[ "}.mw-parser-output .navbar-brackets::after{margin-left:-0.125em;content:" 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title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Property_navbox" title="Special:EditPage/Template:Property navbox"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Property" style="font-size:114%;margin:0 4em"><a href="/wiki/Property" title="Property">Property</a></div></th></tr><tr><th scope="row" class="navbox-group" style="width:1%">By owner</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Collective_ownership" title="Collective ownership">Collective</a></li> <li><a href="/wiki/Common_ownership" title="Common ownership">Common</a></li> <li><a href="/wiki/Communal_land" title="Communal land">Communal</a></li> <li><a href="/wiki/Community_property" title="Community property">Community</a></li> <li><a href="/wiki/Crown_land" title="Crown land">Crown</a></li> <li><a href="/wiki/Customary_land" title="Customary land">Customary</a></li> <li><a href="/wiki/Cooperative" title="Cooperative">Cooperative</a></li> <li><a href="/wiki/Private_property" title="Private property">Private</a></li> <li><a href="/wiki/Public_property" title="Public property">Public</a></li> <li><a href="/wiki/Self-ownership" title="Self-ownership">Self</a></li> <li><a href="/wiki/Social_ownership" title="Social ownership">Social</a></li> <li><a href="/wiki/State_ownership" title="State ownership">State</a></li> <li><a href="/wiki/Unowned_property" title="Unowned property">Unowned</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">By nature</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Croft_(land)" title="Croft (land)">Croft</a></li> <li><a href="/wiki/Estate_in_land" title="Estate in land">Estate (landed)</a></li> <li><a href="/wiki/Intangible_property" title="Intangible property">Intangible</a></li> <li><a href="/wiki/Intellectual_property" title="Intellectual property">Intellectual</a> <ul><li><a href="/wiki/Indigenous_intellectual_property" title="Indigenous intellectual property">indigenous</a></li></ul></li> <li><a href="/wiki/Personal_property" title="Personal property">Personal</a></li> <li><a href="/wiki/Tangible_property" title="Tangible property">Tangible</a> <ul><li><a href="/wiki/Real_property" title="Real property">real</a></li></ul></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="/wiki/Commons" title="Commons">Commons</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Common_land" title="Common land">Common land</a></li> <li><a href="/wiki/Common-pool_resource" title="Common-pool resource">Common-pool resource</a></li> <li><a href="/wiki/Digital_commons_(economics)" title="Digital commons (economics)">Digital</a></li> <li><a href="/wiki/Global_commons" title="Global commons">Global</a></li> <li><a href="/wiki/Information_commons" title="Information commons">Information</a></li> <li><a href="/wiki/Knowledge_commons" title="Knowledge commons">Knowledge</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Theory</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Bundle_of_rights" title="Bundle of rights">Bundle of rights</a></li> <li><a href="/wiki/Commodity" title="Commodity">Commodity</a> <ul><li><a href="/wiki/Fictitious_commodities" title="Fictitious commodities">fictitious commodities</a></li></ul></li> <li><a href="/wiki/Common_good_(economics)" title="Common good (economics)">Common good (economics)</a></li> <li><a href="/wiki/Excludability" title="Excludability">Excludability</a></li> <li><a href="/wiki/First_possession_theory_of_property" title="First possession theory of property">First possession</a> <ul><li><a href="/wiki/Original_appropriation" title="Original appropriation">appropriation</a></li> <li><a href="/wiki/Homestead_principle" title="Homestead principle">homestead principle</a></li></ul></li> <li><a class="mw-selflink selflink">Free-rider problem</a></li> <li><a href="/wiki/Game_theory" title="Game theory">Game theory</a></li> <li><a href="/wiki/Georgism" title="Georgism">Georgism</a></li> <li><a href="/wiki/Gift_economy" title="Gift economy">Gift economy</a></li> <li><a href="/wiki/Labor_theory_of_property" title="Labor theory of property">Labor theory of property</a></li> <li><a href="/wiki/Law_of_rent" title="Law of rent">Law of rent</a> <ul><li><a href="/wiki/Rent-seeking" title="Rent-seeking">rent-seeking</a></li></ul></li> <li><a href="/wiki/Legal_plunder" class="mw-redirect" title="Legal plunder">Legal plunder</a></li> <li><a href="/wiki/Natural_rights_and_legal_rights" title="Natural rights and legal rights">Natural rights</a></li> <li><a href="/wiki/Ownership" title="Ownership">Ownership</a></li> <li><a href="/wiki/Property_rights_(economics)" title="Property rights (economics)">Property rights</a> <ul><li><a href="/wiki/Primogeniture" title="Primogeniture">primogeniture</a></li> <li><a href="/wiki/Usufruct" title="Usufruct">usufruct</a></li> <li><a href="/wiki/Women%27s_property_rights" title="Women's property rights">women's</a></li></ul></li> <li><a href="/wiki/Right_to_property" title="Right to property">Right to property</a></li> <li><a href="/wiki/Rivalry_(economics)" title="Rivalry (economics)">Rivalry</a></li> <li><a href="/wiki/Tragedy_of_the_commons" title="Tragedy of the commons">Tragedy of the commons</a> <ul><li><a href="/wiki/Tragedy_of_the_anticommons" title="Tragedy of the anticommons">anticommons</a></li></ul></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Applications</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"></div><table class="nowraplinks navbox-subgroup" style="border-spacing:0"><tbody><tr><td colspan="2" class="navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Acequia" title="Acequia"><i>Acequia</i> (watercourse)</a></li> <li><a href="/wiki/Ejido" title="Ejido"><i>Ejido</i> (agrarian land)</a></li> <li><a href="/wiki/Estate_(law)" title="Estate (law)">Estate</a> <ul><li><a href="/wiki/Estate_(law)" title="Estate (law)">legal</a></li> <li><a href="/wiki/Literary_estate" title="Literary estate">literary</a></li> <li><a href="/wiki/Real_estate" title="Real estate">real</a></li></ul></li> <li><a href="/wiki/List_of_types_of_formally_designated_forests" title="List of types of formally designated forests">Forest types</a></li> <li><i><a href="/wiki/Huerta" title="Huerta">Huerta</a></i></li> <li><a href="/wiki/Inheritance" title="Inheritance">Inheritance</a> <ul><li><a href="/wiki/Executor" title="Executor">executor</a></li></ul></li> <li><a href="/wiki/Land_tenure" title="Land tenure">Land tenure</a></li> <li><a href="/wiki/Property_law" title="Property law">Property law</a> <ul><li><a href="/wiki/Alienation_(property_law)" title="Alienation (property law)">alienation</a></li> <li><a href="/wiki/Easement" title="Easement">easement</a></li> <li><a href="/wiki/Restraint_on_alienation" title="Restraint on alienation">restraint on alienation</a></li> <li><a href="/wiki/Real_estate" title="Real estate">real estate</a></li> <li><a href="/wiki/Title_(property)" title="Title (property)">title</a></li></ul></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Rights</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Air_rights" title="Air rights">Air</a></li> <li><a href="/wiki/Exclusive_economic_zone" title="Exclusive economic zone">Fishing</a></li> <li><a href="/wiki/The_Scheduled_Tribes_and_Other_Traditional_Forest_Dwellers_(Recognition_of_Forest_Rights)_Act,_2006" title="The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006">Forest-dwelling (India)</a></li> <li><a href="/wiki/Freedom_to_roam" title="Freedom to roam">Freedom to roam</a></li> <li><a href="/wiki/Grazing_rights" title="Grazing rights">Grazing</a> <ul><li><a href="/wiki/Pannage" title="Pannage">pannage</a></li></ul></li> <li><a href="/wiki/Hunting" title="Hunting">Hunting</a></li> <li><a href="/wiki/Land_law#Land_rights" title="Land law">Land</a> <ul><li><a href="/wiki/Aboriginal_title" title="Aboriginal title">aboriginal</a></li> <li><a href="/wiki/Indigenous_land_rights" title="Indigenous land rights">indigenous</a></li> <li><a href="/wiki/Squatting" title="Squatting">squatting</a></li></ul></li> <li><a href="/wiki/Littoral_rights" title="Littoral rights">Littoral</a></li> <li><a href="/wiki/Mineral_rights" title="Mineral rights">Mineral</a> <ul><li><i><a href="/wiki/Bergregal" title="Bergregal">Bergregal</a></i></li></ul></li> <li><a href="/wiki/Right_of_way_(transit)" class="mw-redirect" title="Right of way (transit)">Right of way (transit)</a></li> <li><a href="/wiki/Right_of_way_(property_access)" class="mw-redirect" title="Right of way (property access)">Right of way (property access)</a></li> <li><a href="/wiki/Water_right" title="Water right">Water</a> <ul><li><a href="/wiki/Prior-appropriation_water_rights" title="Prior-appropriation water rights">prior-appropriation</a></li> <li><a href="/wiki/Riparian_water_rights" title="Riparian water rights">riparian</a></li></ul></li></ul> </div></td></tr></tbody></table><div></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="/wiki/Accumulation_by_dispossession" title="Accumulation by dispossession">Disposession</a>/<br /><a href="/wiki/Redistribution_of_income_and_wealth" title="Redistribution of income and wealth">redistribution</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Bioprospecting" title="Bioprospecting">Bioprospecting</a> <ul><li><a href="/wiki/Biopiracy" title="Biopiracy">biopiracy</a></li></ul></li> <li><a href="/wiki/Collectivization_in_the_Soviet_Union" title="Collectivization in the Soviet Union">Collectivization</a></li> <li><a href="/wiki/Eminent_domain" title="Eminent domain">Eminent domain</a></li> <li><a href="/wiki/Enclosure" title="Enclosure">Enclosure</a></li> <li><a href="/wiki/Eviction" title="Eviction">Eviction</a></li> <li><a href="/wiki/Expropriation" class="mw-redirect" title="Expropriation">Expropriation</a></li> <li><i><a href="/wiki/Farhud" title="Farhud">Farhud</a></i></li> <li><a href="/wiki/Forced_displacement" title="Forced displacement">Forced migration</a> <ul><li><a href="/wiki/Population_transfer" title="Population transfer">population transfer</a></li> <li><a href="/wiki/Repatriation" title="Repatriation">repatriation</a></li></ul></li> <li><a href="/wiki/Illegal,_unreported_and_unregulated_fishing" title="Illegal, unreported and unregulated fishing">Illegal fishing</a></li> <li><a href="/wiki/Illegal_logging" title="Illegal logging">Illegal logging</a></li> <li><a href="/wiki/Land_Back" title="Land Back">Land Back</a></li> <li><a href="/wiki/Land_reform" title="Land reform">Land reform</a></li> <li><a href="/wiki/Legal_plunder" class="mw-redirect" title="Legal plunder">Legal plunder</a></li> <li><a href="/wiki/Piracy" title="Piracy">Piracy</a></li> <li><a href="/wiki/Poaching" title="Poaching">Poaching</a></li> <li><a href="/wiki/Primitive_accumulation_of_capital" title="Primitive accumulation of capital">Primitive accumulation</a></li> <li><a href="/wiki/Privatization" title="Privatization">Privatization</a></li> <li><a href="/wiki/Regulatory_taking" class="mw-redirect" title="Regulatory taking">Regulatory taking</a></li> <li><a href="/wiki/Slavery" title="Slavery">Slavery</a> <ul><li><a href="/wiki/Bride_buying" title="Bride buying">bride buying</a></li> <li><a href="/wiki/Human_trafficking" title="Human trafficking">human trafficking</a></li> <li>spousal <ul><li><a href="/wiki/Husband-selling" class="mw-redirect" title="Husband-selling">husband-selling</a></li> <li><a href="/wiki/Wife_selling" title="Wife selling">wife selling</a></li></ul></li> <li><a href="/wiki/Wage_slavery" title="Wage slavery">wage</a></li></ul></li> <li><a href="/wiki/Tax" title="Tax">Tax</a> <ul><li><a href="/wiki/Inheritance_tax" title="Inheritance tax">inheritance</a></li> <li><a href="/wiki/Poll_tax" title="Poll tax">poll</a></li> <li><a href="/wiki/Progressive_tax" title="Progressive tax">progressive</a></li> <li><a href="/wiki/Property_tax" title="Property tax">property</a></li></ul></li> <li><a href="/wiki/Theft" title="Theft">Theft</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Scholars<br /><span class="nobold">(<i>key work</i>)</span></th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Fr%C3%A9d%C3%A9ric_Bastiat" title="Frédéric Bastiat">Frédéric Bastiat</a> <ul><li><i><a href="/wiki/The_Law_(Bastiat_book)" title="The Law (Bastiat book)">The Law</a></i></li></ul></li> <li><a href="/wiki/Ronald_Coase" title="Ronald Coase">Ronald Coase</a></li> <li><a href="/wiki/Friedrich_Engels" title="Friedrich Engels">Friedrich Engels</a> <ul><li><i><a href="/wiki/The_Origin_of_the_Family,_Private_Property_and_the_State" title="The Origin of the Family, Private Property and the State">The Origin of the Family, Private Property and the State</a></i></li></ul></li> <li><a href="/wiki/Henry_George" title="Henry George">Henry George</a> <ul><li><i><a href="/wiki/Progress_and_Poverty" title="Progress and Poverty">Progress and Poverty</a></i></li></ul></li> <li><a href="/wiki/Garrett_Hardin" title="Garrett Hardin">Garrett Hardin</a></li> <li><a href="/wiki/David_Harvey" title="David Harvey">David Harvey</a></li> <li><a href="/wiki/John_Locke" title="John Locke">John Locke</a> <ul><li><i><a href="/wiki/Two_Treatises_of_Government" title="Two Treatises of Government">Two Treatises of Government</a></i></li></ul></li> <li><a href="/wiki/Karl_Marx" title="Karl Marx">Karl Marx</a> <ul><li><i><a href="/wiki/Das_Kapital" title="Das Kapital">Das Kapital</a></i></li></ul></li> <li><a href="/wiki/Marcel_Mauss" title="Marcel Mauss">Marcel Mauss</a> <ul><li><i><a href="/wiki/The_Gift_(essay)" title="The Gift (essay)">The Gift</a></i></li></ul></li> <li><a href="/wiki/John_Stuart_Mill" title="John Stuart Mill">John Stuart 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Rothbard</a> <ul><li><i><a href="/wiki/The_Ethics_of_Liberty" title="The Ethics of Liberty">The Ethics of Liberty</a></i></li></ul></li> <li><a href="/wiki/Jean-Jacques_Rousseau" title="Jean-Jacques Rousseau">Jean-Jacques Rousseau</a> <ul><li><i><a href="/wiki/The_Social_Contract" title="The Social Contract">The Social Contract</a></i></li></ul></li> <li><a href="/wiki/Adam_Smith" title="Adam Smith">Adam Smith</a> <ul><li><i><a href="/wiki/The_Wealth_of_Nations" title="The Wealth of Nations">The Wealth of Nations</a></i></li></ul></li></ul> </div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div> <ul><li><span class="noviewer" typeof="mw:File"><span title="Category"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/9/96/Symbol_category_class.svg/16px-Symbol_category_class.svg.png" decoding="async" width="16" height="16" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/9/96/Symbol_category_class.svg/23px-Symbol_category_class.svg.png 1.5x, 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