Collective Action Problems
The problem: self-interested agents engaged in cooperative activities will tend to act in ways that
promote sub-optimal outcomes.
The solution: empower a government (Leviathan) to force people to act in ways that produce
1) An arms race at an international level.
Effects: more anxiety for everybody
Solution: world government with real coercive power.
2) The SUV problem – behemoth
Cause: fear of other SUV’s; fear of being in a crash with a bigger vehicle.
Effect: pollution increase
Solution: significant government surtax on such vehicles
3) Tragedy of the Commons (10 people share common land, each person has five cows)
Cause: fear (if you don’t add a cow, your neighbours will), desire (money from cow)
Effect: degradation of the land (lots of cows will destroy the pasture)
Solution: a larger authority to oversee land management
Key features of th