Give-away shops, swap shops, freeshops, or free stores are stores where all goods are free. They are similar to charity shops, with mostly second-hand items — only everything is available at no cost. Whether it is a book, a piece of furniture, a garment or a household item, it is all freely given away, although some operate a one-in, one-out–type policy (swap shops).
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The free store is a form of constructive direct action that provides a shopping alternative to the capitalist framework, allowing people to exchange goods and services outside of a money-based economy. The roots of the "free store" lie in the anarchist movement. Today the idea is kept alive by the new generations of environmentalists who view the idea as an intriguing way to raise awareness about consumer culture and to promote the reuse of commodities. Although free stores have not been uncommon in the United States since the 1960s, the freegan movement has inspired the establishment of more free stores.
Culturally, some people feel that accepting free goods carries a stigma, so many people who use these shops are those who are led to them either by need (financially poor, such as students, single parents and the elderly) or by conviction (anti-capitalists and environmentalists). Swap shops, where you are asked to bring something in order to take something, are one way in which stigma issues are addressed.
Free stores and similar economic phenomena serve as market intermediaries where the transaction cost of monetizing the marginal value of the good outweighs the said marginal value. Under such circumstances, giving the good away for free serves to maximize aggregate social wealth by bringing a disused product into active economic use and thereby displacing the use of scarce resources that would be necessary to either create that good a second time, or its substitute, to create the same level of utility.
In the United States, really really free market groups organize periodic "market days" in city parks. Participants are encouraged to share unneeded items, food, skills and talents (entertainment, haircutting, etc.), to clean up after themselves and to take home any of their own items they were unable to give away during the event. In other cases, used goods are picked up from the donors' homes, thus eliminating overhead costs. Donors are often not motivated by financial need or strictly anti-capitalist conviction, but by a desire to get rid of what would otherwise be garbage without adding it to landfills.
Another recent development in the give-away shop movement is the creation of the Freecycle Network. It was started in Arizona for the purpose of connecting people who had extra belongings to get rid of with people who needed something, organized as discussion/distribution lists, and usually hosted on one of the free websites.