©SIRJOEL EXAM SOLUTIONS
10/11/2024 1:41 PM
CMC Midterm 2 Exam Study Guide.
Interest Groups - answer✔- groups organized to pursue common interests
-Different than businesses/firms (contracts & hierarchy) or
markets (buyers and sellers interact through transactions)
Pluralist Theory - answer✔-dominated prior to Olson
-Viewed politics as the result of fights between organized interests
-Like billiard balls... groups banged into each other; outcome
predictably reflected forces.
-Pretty optimistic view of American politics: Didn't need to worry
about corruption or tyranny too much because groups would form to
fight policy if it hurt them too much.
Olson - answer✔-Groups don't arise easily or automatically.
-"unless the number of individuals in a group is quite small, or unless there is coercion or some
other special device to make individuals act in their common interest, rational, self interested
, ©SIRJOEL EXAM SOLUTIONS
10/11/2024 1:41 PM
individuals will not act to achieve their common or
group interests."
-Problems: Free riding & coordination costs.
Free Riding (Hardin) - answer✔-Intuition: "honor system" subway... purchase
tickets and stamp them yourself on train car.
No turnstiles or gate employees, so potentially faster and more efficient.
-If one person chooses not to pay, it doesn't noticeably affect train system's
ability to function ("I'm not really hurting anything")
-If everyone thinks that way, system collapses
-Particularly a problem with "goods" that aren't excludable (national defense,
minimum wage, city parks, good public policy, clean air, etc.)
-Non-excludable: People can choose not to contribute and you can't stop
them from enjoying the item.
-Problem: you're always better off if you DON'T pay and still get the item
(instead of paying and getting the same item) assuming you aren't
plagued by guilt
Olson's Task: Identify What
, ©SIRJOEL EXAM SOLUTIONS
10/11/2024 1:41 PM
Helps Groups Act Collectively - answer✔-Concludes that "in the absence
of special arrangements or circumstances", large groups of
individuals will NOT act in the group's best interests
-Mainly because in large groups, tempted to free ride and individual
efforts are:
-Too small to noticeably affect outcome
-Too small to effectively monitor and punish/reward (related to above)
-Too small to think about (opportunity cost)
-Too costly to coordinate, or achieve consensus among group for course of action (Shirky's TED
lecture really makes this point)
privileged group ( How Can Groups Act Collectively? (Olson) ) - answer✔some ("Fat Cats")
care so much about outcome they're willing to provide the good even if others don't help
(Hughes Las Vegas TV station; Flickr power law)
Intermediate group ( How Can Groups
Act Collectively? (Olson) ) - answer✔Intermediate group: "no member has sufficient private
interests to advance the collective interest on
his or her own, although the group is small enough that any contributions made by others can
, ©SIRJOEL EXAM SOLUTIONS
10/11/2024 1:41 PM
easily be recognized." Makes forming and monitoring groups easier.
Latent Groups ( How Can Groups
Act Collectively? (Olson) ) - answer✔Large groups that "require a more sophisticated
organization to advance shared
interests. Individual contributions have essentially undetectable effects on average costs and
benefits." Organizations can monitor contributions and provide:
Selective incentives ( How Can Groups
Act Collectively? (Olson) ) - answer✔incentive applies selectively to individuals depending on
whether they
do or do not contribute toward collective good. Think PBS pledge drive tote bag; AARP
discounts; Zoo stickers for car window; brick or plaque or building name at university.
Government coercion is a selective disincentive.
Social selective incentives ( How Can Groups
Act Collectively? (Olson) ) - answer✔(respect and honor, or ostracism or shame): Cheaper, but
Olson
only sees these working in small groups (more on this later) because members of large
groups wouldn't know each other.
10/11/2024 1:41 PM
CMC Midterm 2 Exam Study Guide.
Interest Groups - answer✔- groups organized to pursue common interests
-Different than businesses/firms (contracts & hierarchy) or
markets (buyers and sellers interact through transactions)
Pluralist Theory - answer✔-dominated prior to Olson
-Viewed politics as the result of fights between organized interests
-Like billiard balls... groups banged into each other; outcome
predictably reflected forces.
-Pretty optimistic view of American politics: Didn't need to worry
about corruption or tyranny too much because groups would form to
fight policy if it hurt them too much.
Olson - answer✔-Groups don't arise easily or automatically.
-"unless the number of individuals in a group is quite small, or unless there is coercion or some
other special device to make individuals act in their common interest, rational, self interested
, ©SIRJOEL EXAM SOLUTIONS
10/11/2024 1:41 PM
individuals will not act to achieve their common or
group interests."
-Problems: Free riding & coordination costs.
Free Riding (Hardin) - answer✔-Intuition: "honor system" subway... purchase
tickets and stamp them yourself on train car.
No turnstiles or gate employees, so potentially faster and more efficient.
-If one person chooses not to pay, it doesn't noticeably affect train system's
ability to function ("I'm not really hurting anything")
-If everyone thinks that way, system collapses
-Particularly a problem with "goods" that aren't excludable (national defense,
minimum wage, city parks, good public policy, clean air, etc.)
-Non-excludable: People can choose not to contribute and you can't stop
them from enjoying the item.
-Problem: you're always better off if you DON'T pay and still get the item
(instead of paying and getting the same item) assuming you aren't
plagued by guilt
Olson's Task: Identify What
, ©SIRJOEL EXAM SOLUTIONS
10/11/2024 1:41 PM
Helps Groups Act Collectively - answer✔-Concludes that "in the absence
of special arrangements or circumstances", large groups of
individuals will NOT act in the group's best interests
-Mainly because in large groups, tempted to free ride and individual
efforts are:
-Too small to noticeably affect outcome
-Too small to effectively monitor and punish/reward (related to above)
-Too small to think about (opportunity cost)
-Too costly to coordinate, or achieve consensus among group for course of action (Shirky's TED
lecture really makes this point)
privileged group ( How Can Groups Act Collectively? (Olson) ) - answer✔some ("Fat Cats")
care so much about outcome they're willing to provide the good even if others don't help
(Hughes Las Vegas TV station; Flickr power law)
Intermediate group ( How Can Groups
Act Collectively? (Olson) ) - answer✔Intermediate group: "no member has sufficient private
interests to advance the collective interest on
his or her own, although the group is small enough that any contributions made by others can
, ©SIRJOEL EXAM SOLUTIONS
10/11/2024 1:41 PM
easily be recognized." Makes forming and monitoring groups easier.
Latent Groups ( How Can Groups
Act Collectively? (Olson) ) - answer✔Large groups that "require a more sophisticated
organization to advance shared
interests. Individual contributions have essentially undetectable effects on average costs and
benefits." Organizations can monitor contributions and provide:
Selective incentives ( How Can Groups
Act Collectively? (Olson) ) - answer✔incentive applies selectively to individuals depending on
whether they
do or do not contribute toward collective good. Think PBS pledge drive tote bag; AARP
discounts; Zoo stickers for car window; brick or plaque or building name at university.
Government coercion is a selective disincentive.
Social selective incentives ( How Can Groups
Act Collectively? (Olson) ) - answer✔(respect and honor, or ostracism or shame): Cheaper, but
Olson
only sees these working in small groups (more on this later) because members of large
groups wouldn't know each other.
