8/11/2019 The Logic of Collective Action

1/4

THE LOGIC OF

COLLECTIVE ACTION Summary - Chapter 1

8/11/2019 The Logic of Collective Action

2/4

Traditional Theory

CommonInterest

Individual1

Individual2

Individual3

Individualn

Group FormationCollective Action

Individual Contribution

G-objectiveFulfillment

I-Objective Fulfillment

Basis:

Individuals are

rational

They act in self

interest , if there

is one.

Collective action problem Situation in which a number of individuals would all benefit from a certain action

However, the action implies a cost

Thus, nobody wants to undertake it because he/she does not want to bear the costs

Individu al rat ional i ty is not suff ic ient for col lect ive rational i ty. This premise stands in

stark contrast to Adam Smith 's invis ib le hand, which indicates that indiv idu al pursui t of

sel f -in terest in compet i tive, pr ivate goo ds markets w i l l fur ther the co l lect ive interest.

Olson's Hypothesis

If everyone in a group has

interests in common, then theywill act collectively to achieve

them

If

()

Then Individual is within his/her rationality to not contribute

Example

8/11/2019 The Logic of Collective Action

3/4

Groups Privileged

Intermediate

Latent

Goods

Exclusive

Inclusive

Degree of Rationali ty( irrationali ty) depend s upon :

Type of Group

Type of Objective/Good

Type of Incentive

Size of Group

Group Symmetry

Nature ofGroup

Size ofGroup

Objective/Good

Size

Small LargeIncentives

CoerciveOutside

Separate

The three are interdependent

8/11/2019 The Logic of Collective Action

4/4