Question

In: Economics

What are some ways to overcome collective action problems?

What are some ways to overcome collective action problems?

Solutions

Expert Solution

A collective action problem exists where rational individual action can lead to a strictly Pareto-inferior outcome, that is, an outcome which is strictly less preferred by every individual than at least one other outcome.

Following are the ways in which collective action problem can be solved.

  1. Increasing the Number of Strategies: The distributional problem associated with collective action problem can be solved by increasing the number of strategies. This is because existence of more strategies results in increase in the number of alternative outcomes from which players can select.
  2. Perfect Information: Existence of perfect information either due to the ability of the parties involved to communicate or due to sequential interaction can solve the co-ordination aspect of the collective action problem.
  3. Repeated Interaction: Repeated interaction causes dilemmas in the mind of players regarding the preferences of the other players. This is likely to make co-operation between the players a rational strategy rather than defecting or betraying.

Related Solutions

Collective action problems are pervasive in politics in general, and the American political system is not...
Collective action problems are pervasive in politics in general, and the American political system is not immune from their influence. After defining the concept of a collective action problem, explain how political parties, electoral processes, and interest groups solve various collective action problems. Please make sure to use at least one example from each of the previously mentioned areas of the political process.   Please explain , thank you
Discuss some of the ways to overcome judgement biases.
Discuss some of the ways to overcome judgement biases.
In what ways is the EU a unique RTA? What are some of the problems confronting...
In what ways is the EU a unique RTA? What are some of the problems confronting the EU today?
Suggestions for actions to overcome the problems. Thai airways covid 19 suggestions to overcome problems
Suggestions for actions to overcome the problems. Thai airways covid 19 suggestions to overcome problems
What are some potential problems with the top-down and bottom-up budgeting processes? What are some ways...
What are some potential problems with the top-down and bottom-up budgeting processes? What are some ways of dealing with these potential problems? In preparing a budget, what indirect costs should be considered? Please use a reference.
suggest ways to overcome each of the following communication Barrie's I) Language problems ii) poor timing...
suggest ways to overcome each of the following communication Barrie's I) Language problems ii) poor timing of interaction III) unclear instructions iv) Forgetfulness v) in-frequent meetings.
Discuss the costs and benefits of collective action with regards to trade legislation. Why is it...
Discuss the costs and benefits of collective action with regards to trade legislation. Why is it that trade restrictions are so prevalent when it is so easy to prove their negative impact on general welfare? (25 points)
What changes in the city’s budgeting and accounting structure would overcome these limitations? What additional problems...
What changes in the city’s budgeting and accounting structure would overcome these limitations? What additional problems might these changes cause? Government activities may be less “profitable” than they appear. A city prepares its budget in traditional format, classifying expenditures by fund and object. In 2010, amid considerable controversy, the city authorized the sale of $20 million in bonds to finance construction of a new sports and special events arena. Critics charged that, contrary to the predictions of arena proponents, the...
What are some problems with ROE?
What are some problems with ROE?
What are two ways by which bacteria can overcome (or avoid) the effects of antibiotics? (i.e.,...
What are two ways by which bacteria can overcome (or avoid) the effects of antibiotics? (i.e., list 2 things bacteria can do to antibiotics to make them not work)- 4pts
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT