No. 107 · People · Sociology
Free Rider Problem
If people can benefit without paying, many will let others pay.
In the Almanac
“Olson’s logic”, 1965 · “OpenSSL”, 2014
Both stories in full, three ways to use it and where it misleads.
Get the AlmanacListen · Watch
Questions
What is Free Rider Problem?
The free rider problem appears when people can benefit from something without contributing, from public radio to open-source software to a shared office kitchen. Each person assumes their small effort will not matter, so the shared good is underfunded or neglected.
How do you use Free Rider Problem?
To counter it, make contributions visible, keep groups small, assign clear owners, and reward those who pitch in. And when you rely on something free every day, consider paying your share.
When does Free Rider Problem matter?
Free Rider Problem is one of the 60 mental models for people, the situations where you ask: Why do people act as they do, and how do I work with them? Within that, it belongs to “Cooperation and trust”, alongside Cooperation, Game Theory and Pirate Code.
What is an example of Free Rider Problem?
Two stories show it at work: Olson’s logic (1965) and OpenSSL (2014). Both are told in full in The Mental Models Daily Almanac, which has two stories for each of its 365 models.
Which mental models are related to Free Rider Problem?
Tragedy of the Commons, Incentives and Directly Responsible Individuals. Free Rider Problem itself comes from sociology.