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A forced rider in economics is a person who is required, by public or private entities, to share in the costs of goods or services without desiring them or valuing them at their price.

Theory

Forced riders in taxation

The forced rider has been cited in various authors' views concerning taxation.

Pacifists are required to pay for national defense.^[1]^[2]^[3]^{[page needed]}
Environmentalists may be required to pay for public works projects, such as dams, which they feel destroy natural habitats in ways they do not condone.^[1]
Healthy and insured individuals being forced via an individual mandate to subsidize insurance for unhealthy and previously uninsured individuals. Previously uninsured individuals are now free riders.^{[citation needed]}
In many European countries, every household is required to purchase a television licence whether they watch television or not.
Childless adults are required to pay for the public education of others' children. Additionally, parents whose children are not using the public school system, such as those enrolled in private or charter schools in the US, are still required to pay for other children's public education, as well.

Forced riders in private property

In a unionized workplace, non-union as well as union members are required to pay dues to the union representing the workplace as a condition of employment.^[4] This is the case in agency shop union security agreements.

References

^ ^a ^b "The Myth of Neutral Taxation" (PDF). July 20, 2005. Retrieved November 30, 2013.
^ Richard Cornes Todd Sandler (July 1, 1994). "Are Public Goods Myths?". Jtp.sagepub.com. Retrieved November 30, 2013.
^ Cowen, Tyler; Tabarrok, Alex (October 9, 2009). Modern Principles of Economics. Macmillan. ISBN 9781429202275. Retrieved November 30, 2013.
^ Gary Galles (July 1, 1994). "Union Dues and the "Free Rider" Problem". mises.org. Retrieved August 11, 2019.

[mises-1] "The Myth of Neutral Taxation" (PDF). July 20, 2005. Retrieved November 30, 2013.

[2] Richard Cornes Todd Sandler (July 1, 1994). "Are Public Goods Myths?". Jtp.sagepub.com. Retrieved November 30, 2013.

[3] Cowen, Tyler; Tabarrok, Alex (October 9, 2009). Modern Principles of Economics. Macmillan. ISBN 9781429202275. Retrieved November 30, 2013.

[4] Gary Galles (July 1, 1994). "Union Dues and the "Free Rider" Problem". mises.org. Retrieved August 11, 2019.

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+{{Use American English|date = March 2019}}
-The '''forced rider problem''' in economics refers to the possibility that individuals may be compelled to share in the costs of [[public goods]] that they do not desire when government or other collectives provide such non-excludable goods.<ref>{{cite web|last=Cowan|first=Tyler|title=Concise Encyclopedia of Economics |url=http://www.econlib.org/library/Enc/PublicGoods.html |work=Public Goods |publisher=Library of Economics and Liberty |accessdate=27 February 2013}}</ref><ref>[http://books.google.com/books?id=4neLQXRNntkC&pg=PA111&dq=%22forced+riders%22&hl=en&sa=X&ei=gC0nUarxC9HOigK3oYHQAQ&ved=0CIIBEOgBMA4#v=onepage&q=%22forced%20riders%22&f=true Austrian Methodology: The Preferred Tax Type]</ref>
+{{Short description|Someone required to pay for something they don't want}}
+{{Use mdy dates|date = March 2019}}
+{{notability|date=September 2021}}
+A '''forced rider''' in economics is a person who is required, by public or private entities, to share in the costs of goods or services without desiring them or valuing them at their price.
-==Overview==
+==Theory==
+=== Forced riders in taxation ===
-Unlike private goods, public goods are [[non-excludable]] and [[Rivalry (economics)|non-rivalrous]].  As a result, some people may benefit from a public good without helping to cover the costs of production. This is known as the "[[free rider problem]]".<ref>[http://books.google.com/books?id=yxNgXs3TkJYC The Encyclopedia of Libertarianism]</ref>{{page?}}<ref>[http://books.google.com/bookshl=en&lr=&id=4XxbYM8UMtwC&oi=fnd&pg=PA63&dq=samuelson+preference+revelation&ots=6MOaOgtG0F&sig=d_h_e_chvtGOHpEFM51aAVEn7VU#v=onepage&q=samuelson%20preference%20revelation&f=true Providing Global Public Goods]{{broken link}}</ref><ref>[http://bbs.cenet.org.cn/UploadImages/200642020355785817.pdf Multipart pricing of public goods]</ref>
+The forced rider has been cited in various authors' views concerning taxation.
+* [[Pacifists]] are required to pay for [[national security|national defense]].<ref name="mises" /><ref>{{cite web|author=Richard Cornes Todd Sandler |url=http://jtp.sagepub.com/content/6/3/369 |title=Are Public Goods Myths? |publisher=Jtp.sagepub.com |date=1994-07-01 |accessdate=2013-11-30}}</ref><ref>{{cite book|url=https://books.google.com/books?id=BdnxxpsF2pMC |title=Modern Principles of Economics |date= October 9, 2009|isbn=9781429202275 |accessdate=2013-11-30|last1=Cowen |first1=Tyler |last2=Tabarrok |first2=Alex |publisher=Macmillan }}</ref>{{page needed|date=March 2013}}
+* [[Environmentalists]] may be required to pay for public works projects, such as dams, which they feel destroy natural habitats in ways they do not condone.<ref name="mises">{{cite web|url=http://mises.org/rothbard/myth.pdf |title=The Myth of Neutral Taxation |date= July 20, 2005|accessdate=2013-11-30}}</ref>
+* Healthy and insured individuals being forced via an [[individual mandate]] to subsidize insurance for unhealthy and previously uninsured individuals.  Previously uninsured individuals are now [[free riders]].{{cn|date=November 2013}}
+* In many European countries, every household is required to purchase a [[television licence]] whether they watch television or not.
+* Childless adults are required to pay for the public education of others' children. Additionally, parents whose children are not using the public school system, such as those enrolled in private or charter schools in the US, are still required to pay for other children's public education, as well.
+=== Forced riders in private property ===
-Collective payment schemes, such as taxes, have historically been used to address the free rider problem.  However compulsory payments may create situations in which individuals are forced to contribute to the cost of public goods which they would not otherwise desire. This is called the "forced rider problem". Some writers have speculated that the forced rider problem might be even a bigger problem than the free-rider problem.<ref name="mises">[http://mises.org/rothbard/myth.pdf The Myth of Neutral Taxation]</ref><ref>[http://books.google.com/books?id=dHI2I5m0sZ0C Bound to Be Free]</ref><ref>[http://books.google.com/books?id=0ozwAAAAMAAJ Public Finance]</ref><ref>Kennett, Patricia (2008). ''[http://books.google.com/books?id=SLRFLlIrqLsC&pg=PA28&lpg=PA28&dq=Nevertheless,+the+classic+solution+to+the+problem+of+underprovision+of+public+goods+has+been+government+funding&source=bl&ots=h__mdFaQDM&sig=vedpmP00LeKdmE2eiGWDB9gpt7A&hl=en&sa=X&ei=3Z4NUbjNJuiligLwqYDYAw&ved=0CE4Q6AEwAw#v=onepage&q=Nevertheless%2C%20the%20classic%20solution%20to%20the%20problem%20of%20underprovision%20of%20public%20goods%20has%20been%20government%20funding&f=false Governance, globalization and public policy]''. Edward Elgar Publishing. p.&nbsp;28. ISBN 978-1845424367</ref><ref>[http://sobek.colorado.edu/~mciverj/Ostrom-PG&PC.PDF  Public Goods and Public Choices]</ref><ref>[http://www.ctf.ca/ctfweb/Documents/PDF/1997ctj/1997CTJ1_Bird.pdf User Charges for Public Services: Potentials and Problems]</ref><ref>[http://books.google.com/books?id=mHLtRkmFV5AC&pg=PA137&dq=%22preference+revelation%22+optimal+provision&hl=en&sa=X&ei=xeQIUYrzI8raigLQ-oC4BA&ved=0CFEQ6AEwBg#v=onepage&q=%22preference%20revelation%22%20optimal%20provision&f=false Ethical Dimensions of the Economy]</ref>
+* In a unionized workplace, non-union as well as union members are required to pay dues to the union representing the workplace as a condition of employment.<ref>{{cite web|author=Gary Galles |url=https://mises.org/wire/union-dues-and-free-rider-problem |title=Union Dues and the "Free Rider" Problem |publisher=mises.org |date=1994-07-01 |accessdate=2019-08-11}}</ref> This is the case in [[agency shop]] union security agreements.
-===Examples===
-The forced rider problem has been cited in various authors' views concerning taxation and union membership.
-====Taxpayers====
-* Pacifists being required to pay for national defense.<ref name="mises" /><ref>[http://jtp.sagepub.com/content/6/3/369 Are Public Goods Myths?]</ref><ref>[http://books.google.com/books?id=BdnxxpsF2pMC Modern Principles of Economics]</ref>{{page?}}
-* Environmentalists being required to pay for public works projects, such as dams, which they feel destroy the habitats of endangered plants and animals.<ref name="mises" />
-* Some people feel it is unfair for them to pay local school taxes when they have no children in the school system.{{cn|date=March 2013}}
-====Workers====
-If individual workers are compelled to pay union dues, then they become forced riders if they believe that they would have benefited more from self-representation.<ref>[http://link.springer.com/article/10.1007%2Fs12122-000-1034-z?LI=true#page-1 Unions and Antitrust]{{Subscription}}</ref><ref>[http://www.fee.org/the_freeman/detail/the-case-of-the-free-rider The Case of the Free Rider]</ref>
 ==See also==
+*[[Accessibility (transport)]]
-* [[Benefit principle]]
-* [[Preference revelation]]
+*[[Automotive city]]
+*[[Ghetto tax]]
+*[[Redlining]]
+*[[Transit desert]]
+*[[Transport divide]]
 ==References==
 {{reflist}}
-[[Category:Economics]]
-[[Category:Microeconomics]]
 [[Category:Public choice theory]]
 [[Category:Public finance]]