Question

In: Economics

describe what are interest groups and why sometimes small interest groups are more successful than large...

describe what are interest groups and why sometimes small interest groups are more successful than large ones.

Solutions

Expert Solution

Interest groups are collections of members with shared knowledge, status, or goals. In many cases, these groups advocate for particular political or social issues.

Interest groups are comprised of individuals with shared knowledge, status, or goals, and in many cases these groups advocate for particular political or social issues. In the United States, interest groups are often associated with lobbying groups, who seek to influence government officials to act favorably towards them. Interest groups, however, are not always involved in lobbying. They may not be politically active, or else they may use indirect tactics such as media campaigns, research, and public opinion polls in order to advance their cause.

The smaller interest group which sees its advantage sees it as significant, whereas the larger group, if they do perceive their disadvantage, see it as relatively small. A subsidy might make a huge difference to the living standards and prospects for farmers, yet cost taxpayers a near-negligible amount, maybe pennies a year. The ones who stand to gain big have more motive to campaign than the larger group which sees its potential losses as tiny.

In this way legislators can act to benefit large numbers of small groups, all of which might be grateful from their gains and campaign for them. And while the cumulative cost to taxpayers might be large, no individual measure is seen as worth campaigning about because the cost of each is small, and it is only the cumulative cost which is large.

Similarly the gains to large numbers from a new proposal might be seen by them as small, even marginal, whereas the loss of value perceived by the small group might be highly significant to them. Thus the small group has a motive to campaign, whereas the large group does not.


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