The Unilateral Solution to Pay Riding

1146 Words5 Pages
Define pay riding. What is free riding? Over time, can the unilateral solution likely turn into a multilateral one? Pay riding can be defined as cooperating with two people who are fighting or at war with one another ADDIN EN.CITE Lee1988158(Lee, 1988)15815817Lee, Dwight R.Free Riding and Paid Riding in the Fight Against TerrorismThe American Economic ReviewThe American Economic Review22-267821988American Economic Association00028282http://www.jstor.org/stable/181809110.2307/1818091Lee198815815815817Lee, Dwight R.Free Riding and Paid Riding in the Fight Against TerrorismThe American Economic ReviewThe American Economic Review22-267821988American Economic Association00028282http://www.jstor.org/stable/181809110.2307/1818091( HYPERLINK l "_ENREF_3" o "Lee, 1988 #158" Lee, 1988). The best example to illustrate this scenario is a country can agree to cooperate with another country in its fight against terrorism, but on the other hand the country gives the terrorists something of value. For example, Saudi Arabia is an ally of U.S., but it is also home to the radical Wahabism. Saudi Arabia gains from both sides as it pays to ride on their different endeavors. Currently the U.S. stands to gain a lot from counterterrorism, and that is why it undertakes unilateral actions willingly, which include preemptive strikes. Pay riding will generate an equilibrium solution, which deviates from the most desirable cooperative solution. This leaves the fighting state to bear all or majority of
Get Access