The Logic Of Collective Action by Mancur Olson

Public Goods and the Theory of Groups

It argues that individuals in large groups have weak incentives to contribute to public goods because they can free ride, so collective action often fails without selective incentives or coercion. Smaller groups can organize more effectively, while larger “latent” groups require by-products or institutional mechanisms to mobilize. The analysis explains the formation and behavior of interest groups, unions, and cartels, highlighting how organizational size, costs, and incentives shape policy and economic outcomes.

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