POL-UA 700 Lecture Notes - Lecture 14: Collective Action, Common-Pool Resource, Club Good
19 Jan 2017
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The collective action model: n number of potential choosers, n number of choosers actually participating, p(n) probability efforts succeed, b benefit of success, c cost of participation. Who participates: suppose i believe n others will participate, payoff to participating = p(n+1)b-c, payoff to not participating = p(n)b, participate if [p(n+1)-p(n)]b > c } individual"s incremental contribution. Free riding: any individual has a small influence on the outcome, there are real costs to participating, time, financial sacrifice, physical danger, retaliation. ,000) and replaces it with an electric car or hybrid (cost about ,000) then cost per person = ,000: participate if cost
