Principles of Economics

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Collective Action

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Principles of Economics

Definition

Collective action refers to the pursuit of a shared goal or interest by a group of individuals working together, often in the face of barriers or obstacles that would prevent them from achieving that goal individually. It is a fundamental concept in economics and political science, particularly in the context of public goods and special interest politics.

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5 Must Know Facts For Your Next Test

  1. Collective action is essential for the provision of public goods, as individual incentives often lead to an undersupply of these goods.
  2. The free-rider problem is a key challenge in collective action, as individuals have an incentive to benefit from a public good without contributing to its provision.
  3. Special interest groups often engage in collective action to influence political decision-making and secure policies that benefit their members, even if these policies may not align with the broader public interest.
  4. Overcoming the free-rider problem in collective action often requires the use of selective incentives, such as social sanctions or the provision of private benefits, to encourage individual participation.
  5. Collective action can also lead to the emergence of social movements and grassroots organizations that advocate for change on a larger scale, such as environmental protection or civil rights.

Review Questions

  • Explain how the concept of collective action relates to the provision of public goods.
    • Collective action is essential for the provision of public goods because individual incentives often lead to an undersupply of these goods. Public goods are non-rivalrous and non-excludable, meaning that one person's consumption does not reduce its availability to others, and it is difficult to prevent people from accessing or using the good. This creates a free-rider problem, where individuals have an incentive to benefit from the public good without contributing to its provision. Overcoming this challenge requires collective action, where a group of individuals work together to ensure the adequate supply of the public good, often through the use of selective incentives or social sanctions to encourage participation.
  • Analyze the role of special interest groups in collective action and their impact on political decision-making.
    • Special interest groups often engage in collective action to influence political decision-making and secure policies that benefit their members, even if these policies may not align with the broader public interest. These groups leverage their collective resources, such as financial contributions, lobbying efforts, and mobilization of their members, to sway political decisions in their favor. This can lead to the implementation of policies that prioritize the interests of the special interest group over the public good, a phenomenon known as the 'special interest problem.' Understanding the dynamics of collective action within the context of special interest groups is crucial for evaluating the fairness and effectiveness of the political process and its impact on the provision of public goods.
  • Evaluate how the concept of collective action can lead to the emergence of social movements and grassroots organizations, and the potential impact of these on broader societal change.
    • Collective action can also lead to the emergence of social movements and grassroots organizations that advocate for change on a larger scale, such as environmental protection or civil rights. These movements often arise when individuals recognize shared interests or grievances, and come together to collectively work towards a common goal. By leveraging the power of collective action, these organizations can bring about significant societal change by raising awareness, mobilizing public support, and pressuring policymakers to implement policies that address their concerns. The impact of these social movements and grassroots organizations can be far-reaching, as they can challenge existing power structures, influence public opinion, and ultimately shape the political and social landscape in ways that better serve the broader public interest.

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