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This book develops an original theory of group and organizational behavior that cuts across disciplinary lines and illustrates the theory with empirical and historical studies of particular organizations. Applying economic analysis to the subjects of the political scientist, sociologist, and economist, Mancur Olson examines the extent to which the individuals that share a common interest find it in their individual interest to bear the costs of the organizational effort.The theory shows that most organizations produce what the economist calls “public goods”―goods or services that are available to every member, whether or not he has borne any of the costs of providing them. Economists have long understood that defense, law and order were public goods that could not be marketed to individuals, and that taxation was necessary. They have not, however, taken account of the fact that private as well as governmental organizations produce public goods.The services the labor union provides for the worker it represents, or the benefits a lobby obtains for the group it represents, are public goods: they automatically go to every individual in the group, whether or not he helped bear the costs. It follows that, just as governments require compulsory taxation, many large private organizations require special (and sometimes coercive) devices to obtain the resources they need.This is not true of smaller organizations for, as this book shows, small and large organizations support themselves in entirely different ways. The theory indicates that, though small groups can act to further their interest much more easily than large ones, they will tend to devote too few resources to the satisfaction of their common interests, and that there is a surprising tendency for the “lesser” members of the small group to exploit the “greater” members by making them bear a disproportionate share of the burden of any group action.All of the theory in the book is in Chapter 1; the remaining chapters contain empirical and historical evidence of the theory’s relevance to labor unions, pressure groups, corporations, and Marxian class action.
- Sales Rank: #50342 in Books
- Brand: Brand: Harvard University Press
- Published on: 1971-01-01
- Original language: English
- Number of items: 1
- Dimensions: .55" h x 5.36" w x 8.16" l, .41 pounds
- Binding: Paperback
- 186 pages
- Used Book in Good Condition
Review
There is now a considerable body of literature which attempts to apply economic analysis to political problems. In my opinion, Olson's is one of the most successful and provocative of these attempts. Olson's central insight is novel and illuminating to political scientists and he shows that by the use of it he can give familiar facts (about labor unions, farm organizations, and other interest groups) new meaning. I believe that his work is going to force the jettisoning of much of what has been said about interest groups and the revision of the rest. It should also have an influence on the many political scientists who work in the field of organization. (Edward C. Banfield, Henry Lee Shattuck Professor of Urban Government, Harvard University)
From the Back Cover
'This superb little volume is worthy of the attention of all social scientists. it can lead to a healthy and challenging discussion and perhaps to a reappraisal of pressure groups in American society.Public Opinion Quarterly.
Most helpful customer reviews
25 of 25 people found the following review helpful.
How to Explain History
By D. W. MacKenzie
Many people discuss the influence of groups, but few really understand why some groups have are more effective than others. Mancur Olson crafted subtle and persuasive arguments explaining why special interest groups are often so effective. People participate in groups according to the expected marginal costs and benefits. Problems with group action emerge when we consider externalities and public goods provision within groups.
Olson's theory is applied to labor unions, corporations, and other pressure groups. Olson also has a critique of Marxian class theory which drives one more nail into the coffin of communism. The Logic of Collective Action is important because it explains so much about how real groups have functioned throughout history. Pressure groups date back to the ancient world, and Olson's theory fits very well with this experience.
Olson's ideas need further dissemination because most people get the special interest issue wrong. Most people recognize that pressure groups are often pernicious. But all too many people think that undue special interest influence is just a current phase that can be dealt with in a simple manner. This book indicates that we really should reconsider the role of government in society, especially at the Federal level. Olson is certainly not an anarchist, he insists that there are some things that government can and should do. However, the inevitability of special interest influence does make it impossible for government to function as many would like it too. Read this book along with Gordon Tullock's The Politics of Bureaucracy. Olson and Tullock enable us to make greater sense of world history.
46 of 46 people found the following review helpful.
GREAT LOGIC, CLEARLY WRITTEN ARGUMENT
By Denis Benchimol Minev
Mancur Olson's The Logic of Collective Action is one of the best arguments I have read on the theory of groups. Given its age (it was originally written in the 1960s), it does not include much of the later scholarship on the subject.
However, it is a great introduction to collective action, as the basic argument has not changed: groups in which the benefits from collective goods cannot be denied to people are very difficult to organize. Organization will more lilkey come about when there is one (or a small number of) individual whose cost of action is lower than his own expected benefits; this leads to an exploitation by the small of the large, which is an interesting and counterintutive situation.
Olson provides a wide array of examples, which are of course old but nonetheless relevant. Examples include farming organizations, trade unions, business pressure groups, medical associations, etc. Overall, I found this book to be very interesting and easy to read, as the economics hardly ever go beyond basic math. For people who like rational arguments, it will be a pleasure to read this. The most interesting portion of the book, in my opinion, is the author's argument why Marxism does not work in practice in the way that Marx predicted.
2 of 2 people found the following review helpful.
Fascinating, if a little technical.
By Bob Graham
Anyone interested in how the world of groups and organizations work should read this book. Even by the author's admission it's technical, and hard to follow at times if you're not an economist. But the theories and explanations are well worth the effrot because they explain in a "non-partisan" ways many things you may have wondered about, and will now see with a new perspective.
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