Mancur Olsen's Theory Of Collective Action: Public Nations
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ASSIGNMENT UDIT NARAYAN KUSULIA
Mancur Olsen was from America. He was developed the theory of concentrated benefits and diffuse costs. His book is called “the theory of collective action: public goods and the theory of groups” it was published in 1965. He described the concept of free rider in his book.
Generally the set of people, who have the same interests or same aims and who organise themselves to do something togetherly to attain the common goal is called as a Group.
Here, Mancur Olson argues that the concentrated minor interests will be over represented and the majority interests trumped…show more content… Here the smaller parties can form the government with the larger party by coalition. Here the smaller parties can put pressure on the larger party by putting demands to them. So here we can say this is the “exploitation” by the small to the great.
So here, Mancur Olson pointed out some causes, that why the larger group gets various problems to attain their collective goal or interests. Firstly he says, that in the larger groups the members get least amount of gain because there are many members in the group. Secondly he says, that in the larger group, the members are more exited to fulfill their personal interests instead of their collective or common goal. Thirdly he says, that due to the free rider problem, here the other members have to contribute the cost to achieve the common objectives.
And also he has pointed out some reasons, that why the small groups do not get failure while achieveing their common interests. Firstly he says, that in the small groups the members get much amount of gain because it cosists of only few members in the group. Secondly he says, that the members of this group act voluntarily because they can achieve their personal goal through the common or collective goal. And this lead to the achievement of the collective interest or common objective of the…show more content… The inclusive common good is more superior in the non market situation. The group always wants other groups to join the organisation to achieve the collective interests.
THE CLASSIFICATION OF GROUP:
Here Mancur Olson argues that the concept of the group can be understood in a theoretical meaning with the concept of pure monopoly, in the basis of market structure. He says that generally the situation in which there will be only one firm in the market can be called as the pure monopoly. Again he says that the situation in which there will be only few firms in the market can be called as the oligopoly market situation. He also says the situation in where there will be many firms in the market can be called as the atomistic competition situation.
Here the atomistic competition can be classified into two kinds such as the pure competition and the monopolistic competition with in the large group as according to Olson. The oligopoly again categorised into two kinds such as the homogeneous and the differentiated.
So here, as according to Mancur Olson, we have two separate kinds of non market groups as on the basis of size which is similar to oligopoly in the market groups. These are such