Monday, May 27, 2013

The economics behind why my college house is a complete mess, always

Last year as a sophomore I lived with seven other guys.  We had one main central trash can in the kitchen and it was implied that it was everyone's responsibility to take out the trash when it was necessary, yet our trash can was always spilling over with old banana peels, pizza boxes and scrap paper.   One roommate of ours had especially poor trash emptying abilities and to test him we quietly refused to take out the garbage until he would.  After a week there were trash piles on the floor and one day he burst into the common room—to empty his personal trashcan into the main one—balancing his pieces of trash onto the existing piles like stacking blocks so they wouldn't topple.  "Someone really needs to take out this trash" I remember him saying.  Yes, someone does need to take out this trash I thought.  Now I live in a house off campus with eleven other guys and this same basic problem still exists.  In fact it is much much worse.  Our house is a filth pit, enough said.  Why is there this problem? Simple economic theory has an answer: the free rider problem.  A free rider is someone who benefits from a service (in this case a clean house) without paying for the cost of the benefit (in this case the effort to clean the house).  My friend I mentioned was the ultimate free rider.  Why should he take out the trash if he knows someone eventually will take it out?  (And yes, eventually we all gave up on the experiment and just took out the damn trash)  He got all the benefit without any of the cost.  Of course if everyone thinks this way what we get is a house my mother would cringe at.  And that is exactly what my house is today.  A complex supply and demand analysis to support my theory:

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