The Logic of Collective Action

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, Mr. 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.