The Logic of Collective Action: Public Goods and the Theory of Groups

Mancur Olson's The Logic of Collective Action addresses the challenges individuals face when trying to work together for a common goal, particularly concerning public goods. A public good is non-excludable and non-rivalrous, meaning everyone benefits regardless of contribution, and one person's use doesn't diminish another's. This creates a "free-rider problem," where rational individuals may avoid contributing, hoping others will bear the costs. Olson argued that for groups to achieve common interests, especially larger ones, "selective incentives" (rewards or penalties) are often necessary to encourage participation and overcome the tendency to free ride. This challenges the idea that people automatically mobilize for group interests.123