Rational Behavior in Groups: The Free-Riding Tendency

Abstract

The individual actor in a group and his or her assessment of the expected net benefits of contributing to the group's common interest compared to the benefits of free riding is the central concern of free-rider theory. Free-rider theory and research designed to test parts of the theory are reviewed. Three findings of value to managers are offered: (1) a free-riding tendency operates in groups, (2) free riding and group size are related, and (3) managers can use various strategies to counter free riding.