Free Rider

Published Dec 28, 2022

Definition of Free Rider

A free rider is someone who benefits from a good or service without paying for it. That means they are able to take advantage of the efforts of others without contributing anything themselves.

Example

To illustrate this, let’s look at a group of friends who are planning a camping trip. They all agree to pitch in and buy the necessary supplies, such as food, tents, and camping gear. However, one of the friends, let’s call him John, decides not to contribute anything. He still joins the trip and enjoys the same benefits as the others, but he does not pay for any of the supplies. In other words, John is a free rider.

Another common example of free riding is lighthouses. All ships and sailors can profit from lighthouses to keep them safe, but most of them don’t have to pay for it, as lighthouses are typically financed by the governments that build them.

Why Free Riders Matter

Free riders can have a significant impact on the success of a project or venture. That’s because they are able to benefit from the efforts of others without contributing anything themselves. This can lead to a situation where the people who are actually doing the work are not getting the rewards they deserve. This can lead to resentment and a lack of motivation, which can ultimately lead to the failure of the project.

Therefore, it is important to identify and address free riders in order to ensure that everyone is contributing their fair share. This can be done by setting clear expectations and rules, as well as by rewarding those who contribute and punishing those who don’t.