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Unformatted text preview: Slide 5 (Operational Inefficiency) o Private sector Profit driven If cant change price point, lower costs o Public Sector Have budget As long as costs are within budget, dont care to lower costs Possibly the opposite o Always try to spend budget Slide 6 (Rent Seeking Behavior) o Small groups try to change public spending for personal gain Spend on lobbying Seen as non-productive o Often exceeds prize Slide 7 (The Special Interest Effect) o Easier to get support for small groups than large groups o The individual costs of taking action often exceed the potential individual benefits o The individual benefits of taking action often exceed the potential individual costs...
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