[Closi]

I think we have a different definition of free riding.

If you and me both buy the same car, but i'm better at negotiating than you and get a lower price, I'm not free riding because you 'funded the design of the car with the extra money you paid', you are just bad at negotiation.

[loeg]

In this metaphor, the car manufacturer only invested R&D in new models because it expected to be able to recoup that R&D spending from my higher purchase price. If I start paying the same low price for cars as you do, the manufacturer stops investing as much in R&D for new models. Your access to new models was free riding on my higher prices.

When we all negotiate lower prices, we get fewer new drugs. Maybe that's better than the status quo (for Americans). Maybe it isn't.

[pfdietz]

The free riding is referring to outcomes rather than causal links.