Free Rider Problem

With the development of the society, the greed of humanity is swelling. Free rider problems usually arise in many respects of public properties. Like, some people need these public properties; however, they proclaim in advance there is no need for them. Thus, when others pay for the price and achieve the necessity, they can just enjoy them without any effort.

Then, many economists began to study the free rider problem. In 1965, Maneur Olson published a book called The Logic of Collective Action: Public Goods and the Theory of Groups. In this book, he advanced the first theory of free riding. Gradually, the free rider problem has been led into the realm of macroeconomics. The definition of free riders becomes more professional. The free rider

As the efforts of each member have a great influence to the team, the individual’s efforts are as in proportion to the awards as possible. Another function of shrinking the size of the group is that social laziness is going to be weakened and that people can obtain higher efficiency rather than before. Therefore, the best solution to avoid the “free rider effect” is to let four to six students in a small group. Moreover, students can create a good study environment, define the reasonable division of labor or teachers can supervise them easily to finish the task and give suitable prize to them.

Different people have distinct attitudes about free rider problem. From the view of common people, free riding can help them to obtain more self-interest. Therefore, they may not be squeezed by the rulers. On the contrary, the government resists free riding. They think that free riders will exacerbate the issue and even cause market

Actually, the free rider effect is ubiquitous. In an organization, especially in large organizations, the free rider problems exist, if no matter whether people work or not, they all can enjoy the privileges of the organization and team production. Nowadays, we can no longer measure other people’s values in one side. People often think about things too simply. There are a lot of things we don’t realize. Not all of the people are care about the values of the event; not all of the people are care about your sense of worth. Something you think is meaningful, but others think it make no sense. Each member will have an opportunistic tendency to reduce their own costs and enjoy the fruits of others' labor because the individual contribution of the team members has no clear corresponding relationship with the remuneration received. Team members lack motivation to work hard will lead to ineffective team