A Free Rider Experiment for the Large Class


Publication: Journal of Economic Education

Volume: Volume 24, No. 4

Issue: Fall 1993

Pages: pp. 353-363

Author(s): Jane Leuthold (University of Illinois, Urbana-Champaign)

Title: A Free Rider Experiment for the Large Class

Abstract: This article describes several classroom activities that are designed to demonstrate the free rider problem. The author gives details for her large classroom activity in which students could allocate an initial hypothetical endowment of $100 to an asset paying a fixed return of 5 percent or an asset paying a return of 10 percent on the total class investment.



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