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Collective action problem
A collective action problem or social dilemma is a situation in which all individuals would be better off cooperating but fail to do so because of conflicting interests between individuals that discourage joint action. The collective action problem has been addressed in political philosophy for centuries, but was more famously interpreted in 1965 in Mancur Olson's The Logic of Collective Action.
Problems arise when too many group members choose to pursue individual profit and immediate satisfaction rather than behave in the group's best long-term interests. Social dilemmas can take many forms and are studied across disciplines such as psychology, economics, and political science. Examples of phenomena that can be explained using social dilemmas include resource depletion and low voter turnout. The collective action problem can be understood through the analysis of game theory and the free-rider problem, which results from the provision of public goods. Additionally, the collective problem can be applied to numerous public policy concerns that countries across the world currently face.
Although he never used the words "collective action problem", Thomas Hobbes was an early philosopher on the topic of human cooperation. Hobbes believed that people act purely out of self-interest, writing in Leviathan in 1651 that "if any two men desire the same thing, which nevertheless they cannot both enjoy, they become enemies." Hobbes believed that the state of nature consists of a perpetual war between people with conflicting interests, causing people to quarrel and seek personal power even in situations where cooperation would be mutually beneficial for both parties. Through his interpretation of humans in the state of nature as selfish and quick to engage in conflict, Hobbes's philosophy laid the foundation for what is now referred to as the collective action problem.
David Hume provided another early and better-known interpretation of what is now called the collective action problem in his 1738 book A Treatise of Human Nature. Hume characterizes a collective action problem through his depiction of neighbors agreeing to drain a meadow:
Two neighbours may agree to drain a meadow, which they possess in common; because it is easy for them to know each others mind; and each must perceive, that the immediate consequence of his failing in his part, is, the abandoning the whole project. But it is very difficult, and indeed impossible, that a thousand persons should agree in any such action; it being difficult for them to concert so complicated a design, and still more difficult for them to execute it; while each seeks a pretext to free himself of the trouble and expence, and would lay the whole burden on others.
In this passage, Hume establishes the basis for the collective action problem. In a situation in which a thousand people are expected to work together to achieve a common goal, individuals will be likely to free ride, as they assume that each of the other members of the team will put in enough effort to achieve said goal. In smaller groups, the impact one individual has is much greater, so individuals will be less inclined to free ride.
The most prominent modern interpretation of the collective action problem can be found in Mancur Olson's 1965 book The Logic of Collective Action. In it, he addressed the accepted belief at the time by sociologists and political scientists that groups were necessary to further the interests of their members. Olson argued that individual rationality does not necessarily result in group rationality, as members of a group may have conflicting interests that do not represent the best interests of the overall group.
Olson further argued that in the case of a pure public good that is both nonrival and nonexcludable, one contributor tends to reduce their contribution to the public good as others contribute more. Additionally, Olson emphasized the tendency of individuals to pursue economic interests that would be beneficial to themselves and not necessarily the overall public. This contrasts with Adam Smith's theory of the "invisible hand" of the market, where individuals pursuing their own interests should theoretically result in the collective well-being of the overall market.
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Collective action problem AI simulator
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Collective action problem
A collective action problem or social dilemma is a situation in which all individuals would be better off cooperating but fail to do so because of conflicting interests between individuals that discourage joint action. The collective action problem has been addressed in political philosophy for centuries, but was more famously interpreted in 1965 in Mancur Olson's The Logic of Collective Action.
Problems arise when too many group members choose to pursue individual profit and immediate satisfaction rather than behave in the group's best long-term interests. Social dilemmas can take many forms and are studied across disciplines such as psychology, economics, and political science. Examples of phenomena that can be explained using social dilemmas include resource depletion and low voter turnout. The collective action problem can be understood through the analysis of game theory and the free-rider problem, which results from the provision of public goods. Additionally, the collective problem can be applied to numerous public policy concerns that countries across the world currently face.
Although he never used the words "collective action problem", Thomas Hobbes was an early philosopher on the topic of human cooperation. Hobbes believed that people act purely out of self-interest, writing in Leviathan in 1651 that "if any two men desire the same thing, which nevertheless they cannot both enjoy, they become enemies." Hobbes believed that the state of nature consists of a perpetual war between people with conflicting interests, causing people to quarrel and seek personal power even in situations where cooperation would be mutually beneficial for both parties. Through his interpretation of humans in the state of nature as selfish and quick to engage in conflict, Hobbes's philosophy laid the foundation for what is now referred to as the collective action problem.
David Hume provided another early and better-known interpretation of what is now called the collective action problem in his 1738 book A Treatise of Human Nature. Hume characterizes a collective action problem through his depiction of neighbors agreeing to drain a meadow:
Two neighbours may agree to drain a meadow, which they possess in common; because it is easy for them to know each others mind; and each must perceive, that the immediate consequence of his failing in his part, is, the abandoning the whole project. But it is very difficult, and indeed impossible, that a thousand persons should agree in any such action; it being difficult for them to concert so complicated a design, and still more difficult for them to execute it; while each seeks a pretext to free himself of the trouble and expence, and would lay the whole burden on others.
In this passage, Hume establishes the basis for the collective action problem. In a situation in which a thousand people are expected to work together to achieve a common goal, individuals will be likely to free ride, as they assume that each of the other members of the team will put in enough effort to achieve said goal. In smaller groups, the impact one individual has is much greater, so individuals will be less inclined to free ride.
The most prominent modern interpretation of the collective action problem can be found in Mancur Olson's 1965 book The Logic of Collective Action. In it, he addressed the accepted belief at the time by sociologists and political scientists that groups were necessary to further the interests of their members. Olson argued that individual rationality does not necessarily result in group rationality, as members of a group may have conflicting interests that do not represent the best interests of the overall group.
Olson further argued that in the case of a pure public good that is both nonrival and nonexcludable, one contributor tends to reduce their contribution to the public good as others contribute more. Additionally, Olson emphasized the tendency of individuals to pursue economic interests that would be beneficial to themselves and not necessarily the overall public. This contrasts with Adam Smith's theory of the "invisible hand" of the market, where individuals pursuing their own interests should theoretically result in the collective well-being of the overall market.