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 ?
A standard argument maintains that such goods--necessarily to be available to every member of a given public if provided to any--will consistently be underproduced on the market because too many people will yield to the temptation to be free riders and so avoid contributing to the cost of providing them, so they must be delivered by a state with the power to fund them by using taxation (pp.
1977) decision and its use will rarely be found to be illegal; the main rationale given by the Court for its adoption of the rule of reason for such restraints was the free rider problem.
Free Rider landed an overdue success at Newmarket and can defy a 3lb penalty in the Castlegate Rated Stakes.
FREE Rider landed an overdue success at Newmarket and can double his season's tally with victory at York tomorrow.
The free rider gains uninformed consumers who first acquire the special services from rivals and who have low shopping costs the consumers Telser originally envisioned.
Currently, Con-way Truckload s package includes consistent freight, bonus pay for reaching safety performance objectives, paid vacations, health care plans, a retirement savings 401(k) plan including a company contribution, free rider programs, a pet companion ride-along program and reliable home time.
Large employers (with 50 plus full-time equivalent employees) that fail to offer adequate and affordable coverage to all full-time employees could trigger a Free Rider Penalty.
A FREE rider improvement day will give motorcyclists the chance to brush up on their skills at Jaguar Sports and Social Club, in Browns Lane, Allesley, on May 15 from 9am-3pm.
I consulted a business school 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 or supermajority of group members.
But she checked the Highway Code, which states that her Free Rider scooter - with a top speed of just 8mph - has every right to be on the road.
FREE RIDER can carry on the good work by taking the Castlegate Rated Stakes at York this afternoon.
That the free rider gets benefits--indeed cannot help getting benefits--for which he does not pay hardly suffices to make him a thief, nor does the fact that the payer might get more benefits if the free rider contributed.