The Group Formation Problem - PowerPoint PPT Presentation

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The Group Formation Problem

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  1. The Group Formation Problem

  2. Truman (revisited) • There are potential groups in society • Disturbance • Group formation (interactions) • Interest group formation (claims on other groups)

  3. Collective Action Problems • Problems that arise when a group of people tries to reach and implement agreements.

  4. Group Formation as a Collective Good • Benefits everyone • Benefit(s) cannot be divided • No one in the group can be excluded from receiving benefits

  5. Problems in producing collective goods • Transaction costs: costs of organizing and working together • Conformity costs: costs of compromise • These costs must be paid in order for a collective good to be produced

  6. The Free Rider Problem • One person’s contribution to the collective good is small • Collective good will be provided regardless of person’s contribution • The person can receive the benefits without contributing • Private incentive is to “free ride” on contributions of others • Examples?

  7. Olson • What is Olson’s argument? • How is this a critique of Truman? • Extending his argument, will groups form? • What might make a group more likely to form?

  8. What kinds of groups will be most likely to form?What kinds of groups will be least likely to form?

  9. Implications • What does it imply about pluralism? • How is it a different argument than Schattsneider’s and Lowi’s? Is it more or less persuasive? Relevant?