Free-Rider Problem, the

Free riding occurs when individuals or organizations enjoy the benefits of a good without contributing to its provision, or when they understate the benefits they derive from a good in order to reduce their contributions to providing the good. The free rider problem is that with fewer contributors, or underestimated benefits, groups may produce less of a good than is socially optimal. The free rider problem is closely connected with the concept of public goods, has been the subject of extensive theoretical and empirical research, has been challenged on the basis of its assumptions about individual behaviour, and has many proposed remedies.