CMC MIDTERM 2 QUESTIONS WITH
CORRECT ANSWERS
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
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
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
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.
Homogenous ( How Can Groups
Act Collectively? (Olson) ) - Answer Cuts coordination costs (but used to be hard to
assemble these groups)
How has CMC changed ability to create and run groups? - Answer -Locating group
members is MUCH easier;
-Common or homogenous interests, regardless of geography [Especially
CORRECT ANSWERS
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
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
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
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.
Homogenous ( How Can Groups
Act Collectively? (Olson) ) - Answer Cuts coordination costs (but used to be hard to
assemble these groups)
How has CMC changed ability to create and run groups? - Answer -Locating group
members is MUCH easier;
-Common or homogenous interests, regardless of geography [Especially
