ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A free rider is a person who benefits from something without expending effort or paying for it. In other words, free riders are those who utilize goods without paying for their use.

Detailed explanation-2: -A free rider is someone who wants others to pay for a public good but plans to use the good themselves; if many people act as free riders, the public good may never be provided. Markets often have a difficult time producing public goods because free riders attempt to use the public good without paying for it.

Detailed explanation-3: -Whenever you enjoy something that seems free, such as a day at a clean beach, someone pays for its upkeep, which technically makes you a free rider. The free rider problem describes what happens when many people enjoy a seemingly free resource without paying for it.

Detailed explanation-4: -In the social sciences, the free-rider problem is a type of market failure that occurs when those who benefit from resources, public goods and common pool resources do not pay for them or under-pay. Examples of such goods are public roads or public libraries or services or other goods of a communal nature.

Detailed explanation-5: -If you provide street lighting in your village, then everyone can benefit from the light. In this case, there will be a temptation to ‘free-ride’ hoping that someone else pays for it and then you get the best of both worlds – you can enjoy the good, but not have to pay towards it.