free rider

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Free rider

A follower who avoids the cost and expense of finding the best course of action simply by mimicking the behavior of a leader who made these investments.

Free Rider

An investor whose investment decisions mimic those of another larger investor or firm. A free rider effectively places his/her hope in the larger investor to make profitable decisions. This is, of course, risky for the free rider because he/she does little to no research on his/her own, but this saves the expense of doing so. See also: Free Rider Problem.

free rider

a CONSUMER who deliberately understates his or her preference for a COLLECTIVE PRODUCT in the hope of being able to consume the product without having to pay the full economic price for it.

For example, where a number of householders seek to resurface their common private road, an individual householder might deliberately understate the value of the resurfaced road to himself on the grounds that the other householders will pay to have all the road resurfaced anyhow and that he will therefore enjoy the benefit of it without having to pay towards its resurfacing. See CLUB PRINCIPAL.

References in periodicals archive ?
Unions and their supporters say that without a fair share fee, some workers would become free riders - they'd receive the raises and protections that contracts provide without sharing in the cost of obtaining them.
The second, nonrivalry in consumption, states that even if it were possible to exclude free riders, it would not be efficient to do so since the marginal cost of an additional user would be zero.
It's human nature to punish free riders who abuse shared public goods, such as drivers who park in express lanes during rush hour.
The study also predicts that if collaborative abilities do not evolve, only a small fraction of the general population cooperates for public good while the rest become free riders.
They are free riders, and they've been free riders for the last 30 years, and it's worked really well for them," Obama said.
I consulted a business professor who said, "The ground rules for dealing with free riders are sometimes explicitly laid out--for example, the free rider may be fired by an appropriate majority/supermajority of group members.
A new approach should be to tackle the elephant in the room: the problem of apathy or so called free riders - people who are happy to receive an organ but not to donate.
A new approach should be to tackle the elephant in the room: the problem of apathy or so-called free riders - people who are happy to receive an organ but not to donate.
He added: "I am confident that the vast majority of motorists will welcome me tackling those who are evading their motor tax and who are free riders on the rest of us.
National authorities in Member States have their role to play in verifying compliance and sanctioning free riders.
Free riders are usually used as justification for government intervention into the private market to allocate these so-called public goods in order to correct the market failure.
In view of the above, TDAP develops a criteria for granting hospitality to the foreign buyers in terms of their import capacity where a special effort is made to exclude any free riders whose visit does not relate to the objectives of the show, as set by the organization.