Pat goes to the local stereo store to learn about high-end equipment.The salesperson spends an hour talking with Pat and demonstrating equipment.Pat then leaves and orders a system from an Internet store and saves $250.Pat's behavior is

Question

Quizplus · Accepted Answer

Pat is free riding, which refers to benefiting from a public good (in this case, the knowledge and expertise of the salesperson) without paying for it. Pat took advantage of the salesperson's time and expertise but ultimately made a purchase elsewhere, reducing the salesperson's potential sales commission. This behavior is not illegal or discriminatory, and it is not an example of adverse selection.

Pat Goes to the Local Stereo Store to Learn About