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CMC Midterm 2 Exam Study Guide.

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CMC Midterm 2 Exam Study Guide. Interest Groups - answer- groups organized to pursue common interests -Different than businesses/firms (contracts & hierarchy) or markets (buyers and sellers interact through transactions) Pluralist Theory - answer-dominated prior to Olson -Viewed politics as th...

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  • October 16, 2024
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  • 2024/2025
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©SIRJOEL EXAM SOLUTIONS
10/11/2024 1:41 PM



CMC Midterm 2 Exam Study Guide.


Interest Groups - answer✔- groups organized to pursue common interests


-Different than businesses/firms (contracts & hierarchy) or

markets (buyers and sellers interact through transactions)


Pluralist Theory - answer✔-dominated prior to Olson


-Viewed politics as the result of fights between organized interests

-Like billiard balls... groups banged into each other; outcome

predictably reflected forces.

-Pretty optimistic view of American politics: Didn't need to worry

about corruption or tyranny too much because groups would form to

fight policy if it hurt them too much.


Olson - answer✔-Groups don't arise easily or automatically.


-"unless the number of individuals in a group is quite small, or unless there is coercion or some

other special device to make individuals act in their common interest, rational, self interested

, ©SIRJOEL EXAM SOLUTIONS
10/11/2024 1:41 PM


individuals will not act to achieve their common or

group interests."

-Problems: Free riding & coordination costs.


Free Riding (Hardin) - answer✔-Intuition: "honor system" subway... purchase


tickets and stamp them yourself on train car.

No turnstiles or gate employees, so potentially faster and more efficient.

-If one person chooses not to pay, it doesn't noticeably affect train system's

ability to function ("I'm not really hurting anything")

-If everyone thinks that way, system collapses

-Particularly a problem with "goods" that aren't excludable (national defense,

minimum wage, city parks, good public policy, clean air, etc.)

-Non-excludable: People can choose not to contribute and you can't stop

them from enjoying the item.

-Problem: you're always better off if you DON'T pay and still get the item

(instead of paying and getting the same item) assuming you aren't

plagued by guilt

Olson's Task: Identify What

, ©SIRJOEL EXAM SOLUTIONS
10/11/2024 1:41 PM


Helps Groups Act Collectively - answer✔-Concludes that "in the absence


of special arrangements or circumstances", large groups of

individuals will NOT act in the group's best interests

-Mainly because in large groups, tempted to free ride and individual

efforts are:

-Too small to noticeably affect outcome

-Too small to effectively monitor and punish/reward (related to above)

-Too small to think about (opportunity cost)

-Too costly to coordinate, or achieve consensus among group for course of action (Shirky's TED

lecture really makes this point)


privileged group ( How Can Groups Act Collectively? (Olson) ) - answer✔some ("Fat Cats")

care so much about outcome they're willing to provide the good even if others don't help

(Hughes Las Vegas TV station; Flickr power law)

Intermediate group ( How Can Groups


Act Collectively? (Olson) ) - answer✔Intermediate group: "no member has sufficient private

interests to advance the collective interest on

his or her own, although the group is small enough that any contributions made by others can

, ©SIRJOEL EXAM SOLUTIONS
10/11/2024 1:41 PM


easily be recognized." Makes forming and monitoring groups easier.

Latent Groups ( How Can Groups


Act Collectively? (Olson) ) - answer✔Large groups that "require a more sophisticated

organization to advance shared

interests. Individual contributions have essentially undetectable effects on average costs and

benefits." Organizations can monitor contributions and provide:

Selective incentives ( How Can Groups


Act Collectively? (Olson) ) - answer✔incentive applies selectively to individuals depending on

whether they

do or do not contribute toward collective good. Think PBS pledge drive tote bag; AARP

discounts; Zoo stickers for car window; brick or plaque or building name at university.

Government coercion is a selective disincentive.

Social selective incentives ( How Can Groups


Act Collectively? (Olson) ) - answer✔(respect and honor, or ostracism or shame): Cheaper, but

Olson

only sees these working in small groups (more on this later) because members of large

groups wouldn't know each other.

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