Topic 5 Interest Groups

Topic 5 Interest Groups - EXAM 2 WED APRIL 9TH, 5-9 Topic 5...

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EXAM 2 WED APRIL 9 TH , 5-9 Topic 5 Interest Groups D. Public Goods and the Free Rider Problem 1. Characteristics of ‘Public Goods” a. Non-excludability-once provided, cannot be withheld from anyone (most important) b. Each individual contribution is a trivial contribution to the total cost c. One person’s enjoyment of the benefit does not prevent others from benefiting from it 2. Free Riders a. Rational not to join a group to produce public goods b. You get the benefits regardless, and your absence won’t be noticed c. But if everyone is rational, there won’t be enough participants to work to get the public good d. Applies even if the benefits of the public good are greater than the costs of participating e. Less of a problem in small groups 3. Overcoming the Free Rider Problem a. Selective benefits (only to members) b. Government coercion –ex. Labor unions- states that prevent a closed shop c. Social ostracism-mainly applies to small groups- expect loyalty E. Other Theories
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Topic 5 Interest Groups - EXAM 2 WED APRIL 9TH, 5-9 Topic 5...

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