Collective Action Problems
A look at collective action problems and how they relate to market failure.
The Logic of Collective Action
There are a lot of government policies, like airline bailouts, that from an economic perspective don't make any sense at all. Politicians have an incentive to keep the economy strong as incumbents are reelected at a much higher rate during booms than busts. So why do so many government policies make such little economic sense?
There are a lot of government policies, like airline bailouts, that from an economic perspective don't make any sense at all. Politicians have an incentive to keep the economy strong as incumbents are reelected at a much higher rate during booms than busts. So why do so many government policies make such little economic sense?