The freedom to contract and the free-rider problem

We present an economic argument for restraining certain voluntary agreement s. We identify a class of situations where single individuals or parties ma y use the freedom to contract to subtly manipulate large groups of individu als by offering them contracts that promote free-riding behavior. We provid e three examples where placing restrictions on the freedom to contract may prove beneficial. The first example provides a rationale for the prohibitio n of exclusionary contracts. We point to the role most favored nation claus es may play in facilitating such inefficient exclusionary practices. The se cond example provides justification for prohibiting employers from proposin g to compensate workers for committing not to join a labor union. The third example provides a rationale for the ban against vote trading.