Saturday, September 17, 2011

Free Riders

In economics "free riders" arethose who consume a resource without paying for it, or pay lessthan the full cost of its production. Free riding is usuallyconsidered to be an economic"problem" only when it leads to the non-production or under-production of a public good (andthus to Pareto inefficiency ), or when it leads to the excessive use of a common property .

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