GOV 310L Chapter Notes - Chapter 7: Free Rider Problem, Private Good

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Govt. Chapter 7 Notes 9/25/16
Interest Groups in the US
Interest Groups - organization of association of people with common
interests that engages in politics on behalf of its members.
Americans are known to join/associate with groups
Growth and Development of Groups
Before the Civil War, there were not many groups, but
afterwards, national groups started to form
Another major wave of group organization was during the
Progressive Era
The post 1960 group formation was the biggest and most
diverse
There are specialized occupational associations and political
ideology associations
Single-Issue Group - interest group that focuses to influence
policy on one issue
Interest groups proliferated the past generation because of
changes in politics and technology
Increased government activity gave people more reasons
to form groups
Once new groups organize, they may stimulate the formation of
other groups opposed to them
Forming and Maintaining Interest Groups
Millions of people do not join or support associations whose interest
they share
Joining/Supporting a group requires some investment of resources
People with more resources will find participation easier
Incentives take many forms and different groups rely on different
kinds of incentives; 3 categories of incentives
Solidary - social reasons
Membership in group is an end itself
Most groups like these are nonpolitical
Material - Economic reasons
Membership offers tangible benefits
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Members want to advance material interests, or gain
special perks
Purposive - want to advance group’s agenda/goals
This reason is usually foundation of the group’s that are
active in politics
Want to bring a change
Free-Rider Problem
Most groups, but especially purposive incentives groups, face a
problem called free-rider problem - problem that arises when
people can enjoy the benefits of group activity without bearing
any of the costs
Arises when people perceive that attainment of the group goal
has little relationship to their personal contribution
2 common elements
First, on reflection, people realize that their personal
impact on a particular problem or issue is so small as to
be unnoticeable
If contribution makes no difference, why
contribute?
Second, individuals receive benefit regardless of whether
they contribute
If other people manage to get goals accomplished,
you enjoy those outcomes
These two elements are major obstacles to group formation and
survival, and usually hinders goals of the groups
2 conditions affect severity of the free-rider problem
First, other things being equal, the larger the group, the
bigger the problem
Second, the problem is more serious the greater distance
and abstractness of the benefit the group seeks to
achieve.
Public Goods - Goods enjoyed simultaneously by a group, as
opposed to a private good that must be divided up to be shared
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Document Summary

Interest groups - organization of association of people with common interests that engages in politics on behalf of its members. Americans are known to join/associate with groups. Before the civil war, there were not many groups, but afterwards, national groups started to form. Another major wave of group organization was during the. The post 1960 group formation was the biggest and most diverse. There are specialized occupational associations and political ideology associations. Single-issue group - interest group that focuses to influence policy on one issue. Interest groups proliferated the past generation because of changes in politics and technology. Increased government activity gave people more reasons to form groups. Once new groups organize, they may stimulate the formation of other groups opposed to them. Millions of people do not join or support associations whose interest they share. Joining/supporting a group requires some investment of resources. People with more resources will find participation easier.

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