AMH-2097 Lecture Notes - Lecture 8: Freeriding, Collective Action
Document Summary
Collective action: members of a group act together for common interests. Assumes that individuals in a group will work to help the group achieve its objective or goal. Examples where this might work: community garden, orchestra, fraternity. Examples where this might not work: when you get bigger, university instead of a classroom, more people different goals. Collective good: something that all participants in the group desire and that shared by all the member of the group. Once good or benefit is provided, cannot exclude anyone from enjoying it, no one individual makes the difference in terms of whether provided. Although all parties may desire and benefit from a collective good; under many circumstances they will not take individual action to achieve that collective good. When the benefit is lower than the cost. Free- riders benefit from the group outcome but don"t contribute to it.
