Tuesday, November 11, 2014

ECON 105: Free (Bus) Riding - Exaggerated Economic Myth?

Brewer doing the 'Bus Dance' to make it arrive quicker
One of my lessons this semester for Environmental Economics has involved the classic 'free rider' problem. Basically, the theoretical idea is that some goods/services are not privately owned, so it's difficult to keep people from consuming them without paying. In practical terms, it means that some people go out of their way to get something for 'free' at the expense of the rest of us. Economists spend a lot of sleepless nights attempting to fix these problems (thus the lesson within the environmental realm).

We Bartleys don't use the bus system in Lexington (except for Keeneland season), but we use it practically every day here in Alanya (we even have our own bus cards!). When it arrives, usually doors open in the front, middle and rear of the bus. The front is for people to enter and pay for the trip (about $0.65 with the card) and the latter two doors are for people to exit. Sometimes tourists won't proceed to the back of the bus as it fills up, even if the bus driver yells. So occasionally, people enter the two back doors while they are open to ensure that they get on the bus. Usually, the tourists don't pay when they use this technique, but I have yet to see a Turk that won't make sure he/she pays. Oftentimes, this is accomplished by sending forward a bus card for a stranger to swipe or even cash to pay the now-in-gear driver, waiting patiently for strangers to send back the change. It seems to be a normal practice.

Now I have done this many times for a hot dog at a ballpark, but I can watch who has my money and I won't get a dog without this strategy (because I'm not going to fight the foot and seat traffic). But the bus driver is already heading down the road. I have never seen any transit cops, so one does not seem likely to 'get in trouble' in this situation and yet the locals make sure to pay. I have not seen the free (bus) riding here. Admittedly, I don't ride the bus much in the US, but is this happening back home as well? Or are the Turks immune to the free rider issue, at least in this case? Or is this not as big of an issue as economists fear (and I can get a more restful sleep)? - Alan

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