The Logic of Collective Action: Public Goods and the Theory of Groups, Second printing with new preface and appendix [Paperback]

 

 

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According to Mancur Olson, one of the world's leading experts on the dynamics of collective action, social and economic groups generally form to promote collective goals in respect to personal interests. Ideally-sized groups work well only because its overall interests can be shown to mesh with those of the individual. On the other hand, large groups tend to function less cohesively because the individual does not have the same opportunity to realize personal gain or recoognition as in a small group. Small groups tend to be more able to involve the interests of the individual in defining the good of the whole, but, at the same time, less able because of financial restrictions to offer financial security to its members. As you can see, Olson has presented a number of trade-offs for his reader to consider when settling the issue of what degree of collective action best suits our economic needs. By the way, being a lone-wolf is not an option because according to Olson's theory, there is no social or economic benefit to be derived from standing alone. Somewhere, somehow we, as members of the human race, must attach ourselves to a group; it all comes down to how comfortable one is in relation to the size of the organization and personal benefit to be derived from it. When reading this book, I thought of Hillary Clinton's present position within the Democratic Party. Using some of Mancur Olson's observations, it might be said that egotistically, Hillary and Bill has grown too big for the party to handle. Though she wields consider influence within its ranks, many Democrats are starting to resent her influence as being inordinate. A collective action by a dominant subgroup called the Obama camp is clamoring for her to leave the field and surrender the nomination to their champion. According to Olson, such a dynamic of inner group dissatisfaction and turmoil often happens when its numbers become too large and its membership too active. As proof of that, which of the two main parties has been actively signing up new members to the fold? Of course the Democrats, and very new member enlisted becomes a potential delegate for either candidate. I would go one step further and suggest that collective action works as long as people work together in harmony or step aside and let a certain subgroup take over in the interests of the whole. If neither of these scenarios work, the group effort becomes fractured, which is where I think the Democrats might be heading before too long if they can't, at least, agree to disagree. For the Republicans, the story is slightly different. There is no evidence of unhappiness in the ranks but there is, in its place, a palpable lack of enthusiasm and optimism. I highly recommend this little book for what it says about the irrefutable logic of how groups of any size work in relation to the needs of the individual.

In this influential work, Mancur Olson is dismissing the 'classical' group theories, as he calls them. Rational individuals will rarely contribute to a common (or collective in the economics-lingo) good, because their contribution will be insignificant and the good will be produced whether the individual provides the good or not. With his stringent logic, the late Olson reminds his readers that groups of all kinds consist of individuals, and that these individuals usually follow there own interest, which not necessarily correspond with the organization's.

The book's explanatory powers are tremendous. Why large groups very rarely if ever are able to organize, and at the same time why some small groups exercise extraordinary amounts of power is Olsons main point of interest. In the very interesting last chapter he describes which features an organization, be it a farmer union, a labor union, a profession lobby or a special interest group, must inhibit to attain members.

The best trait of the book (at least for this reviewing economist) is the persuasive logic with which the arguments are hammered home, and the instructive examples that are used to illustrate the point just made. One little objection should be Olson's (human) tendency to arrogance when he is most pleased with his own conclusions. However: still an excellent read, 40 years after it's first printing.

A very short book that lays out, well, the logic of collective action very effectively. The counterintuitive fact that the smaller lobby groups tend to dominate the wider public is mechanically explained, and once you turn your mind to it, a lot of what goes on in politics becomes much clearer measured against Olson's theory.

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5.0 out of 5 stars Old, but valuable, or at least very interesting
This book is based on Olson's Ph.D. dissertation in 1963 at Economics Department of Harvard entitled 'A General Theory of Public Goods. Read more

Published on May 4 2003 by Tatsuro Yoda

5.0 out of 5 stars GREAT LOGIC, CLEARLY WRITTEN ARGUMENT
Mancur Olson's The Logic of Collective Action is one of the best arguments I have read on the theory of groups. Read more

Published on April 8 2003 by Denis Benchimol Minev

5.0 out of 5 stars Problem of Free Rider
Cost/Benefit When we look at cases of organizations like labor union, pressure group or firm, Even if members share the common interest, it doesn't guarantee they will act on that... Read more

Published on Sep 22 2001 by Suckwoo Lee

5.0 out of 5 stars The Few, The Proud, The Worthwhile
It continually amazes the curious mind how few books are written about important matters. It would seem groups are a fecund area for study, a kind of natural playground for better... Read more

Published on Sep 6 2001 by James Versluys

4.0 out of 5 stars A different point of view on the association-making theory
This is not the first Mancur Olson's book i have read (the other was an spanish translation of "The Rise and Fall .."). Read more

Published on Dec 11 2000 by emanriqu

4.0 out of 5 stars Good in theory, lacking proof
While this is an excellent book on group theory, it lacks sufficient empirical evidence supporting the conclusions the author comes to. Read more

Published on Nov 14 2000

5.0 out of 5 stars THE crucial book on political economy
I once read that Olson was on the short list of people being considered for the Nobel Prize at the time of his death. Read more

Published on Aug 11 2000 by J. Michael Showalter

3.0 out of 5 stars All large systems fail
Every system will expand to fill the univerese, corrupting all that it comes in contact with. that is the entire book. a few storys, ect. but that is it. THE WHOLE BOOK.

Published on Mar 17 2000 by shunny boy

5.0 out of 5 stars A Classic Book of Right-Wing Collective Behavior
Well, I'm a graduate school student in Taiwan. My major is labor studies. Olson provide a insightful thought about collective behavior. Read more

Published on Sep 12 1999 by abberb

1.0 out of 5 stars Olson needs to depart from ivory tower and visit real world
Probably one of the worst written books on economic theory that has been written.

Author hasn't visited corporate America to understand how groups small and large... Read more

Published on Sep 3 1999

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