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Mancur Olson

The Logic of Collective Action: Public Goods and the Theory of Groups, With a New Preface and Appendix (Harvard Economic Studies) Paperback – January 1, 1971

by Mancur Olson (Author)

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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.

Print length

186 pages
Language

English
Publisher

Harvard University Press
Publication date

January 1, 1971
Dimensions

5.36 x 0.55 x 8.16 inches
ISBN-10

0674537513
ISBN-13

978-0674537514
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Editorial Reviews

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“The existence of a large group with a common interest does not automatically give rise to collective action. There must be an individual incentive to join in or there must be compulsion. This proposition, together with the notion that small groups are qualitatively different from large ones, forms the core of this extremely stimulating book… The range of phenomena it helps to explain and the number of existing ideas it overthrows are very considerable. Having set out his theory of groups and organizations…the author demonstrates its explanatory power by examining the growth of trade unionism, the concept of economic freedom, Marx’s class theory, orthodox theories of pressure groups, special interest groups and, lastly, the unorganized groups. Economic analysis is blended with political theory and sociology with great success. The result is an important contribution to social science.”―The Economist

“Olson’s book is a significant and valuable contribution to the economist’s attempt to come to grips with organizational problems.”―Neil W. Chamberlain, American Economic Review

“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

“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.

Product details

Publisher ‏ : ‎ Harvard University Press; Revised edition (January 1, 1971)
Language ‏ : ‎ English
Paperback ‏ : ‎ 186 pages
ISBN-10 ‏ : ‎ 0674537513
ISBN-13 ‏ : ‎ 978-0674537514
Item Weight ‏ : ‎ 6.6 ounces
Dimensions ‏ : ‎ 5.36 x 0.55 x 8.16 inches

Best Sellers Rank: #151,847 in Books (See Top 100 in Books)
- #1,580 in Economics (Books)
- #1,634 in Sociology (Books)

Customer Reviews:
4.6 105 ratings

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4.6 out of 5

105 global ratings

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M. Heiss

invaluable!

Reviewed in the United States 🇺🇸 on November 4, 2020

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If you read it for no other purpose, read it for these two sections:

1) Critique of Marx (Ch. 4, primarily) Marxism *does not* come about through a class of people overthrowing bourgeois values. In practice, Marxism only happens when a tiny faction commits violence under (and against) a weak government. Marx is emotional, not rational; that emotion is ENVY (108). Marx is utopian and his “Theory of Everything” is just as riddled with holes as any other “Theory of Everything,” except more so, because Marx misunderstands both human nature and prices. Lethal for an economist.

2) Externalities (Appendix A and pp 48-49, 161) When common goods benefit only a minority within a jurisdiction, the goods will be provded (if at all) only to a less than optimal degree (171). The discussion of “political entrepreneurs” who bluster instead of bargaining is prescient (176).

This is my third time through this book (1992 and 1997 were the others) and it is interesting to see Olson’s theories hold up through different political/social cycles. The book was written in 1965, the Appendix in 1971. I could spend a week reading and thinking about just the footnotes in this book. Excellent analysis and cogent writing. Recommend!

Read also:
William J. Baumol “Welfare Economics” p. 98
Joseph Schumpeter “Capitalism, Socialism and Democracy” p. 109

6 people found this helpful

Helpful

D. W. MacKenzie

How to Explain History

Reviewed in the United States 🇺🇸 on April 18, 2008

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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.

28 people found this helpful

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Denis Benchimol Minev

GREAT LOGIC, CLEARLY WRITTEN ARGUMENT

Reviewed in the United States 🇺🇸 on April 8, 2003

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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.

50 people found this helpful

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Robert J. York

Public goods and public action

Reviewed in the United States 🇺🇸 on April 5, 2018

Verified Purchase

Large organizations fail to deliver public goods to their members, but they provide other social benefits (and coerce non-members into join rather than losing their business). This will definitely make one look at the claims of unions skeptically, if you did not already.

One person found this helpful

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Bob Graham

Fascinating, if a little technical.

Reviewed in the United States 🇺🇸 on May 23, 2013

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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.

3 people found this helpful

Helpful

Brandon Brown

Foundational text for American politics!

Reviewed in the United States 🇺🇸 on December 19, 2018

Verified Purchase

This is an approachable text for students who are new to studying American politics. This is especially true for classes on parties, intrest groups, and campaigns.

One person found this helpful

Helpful

Matt Miller

A Classic

Reviewed in the United States 🇺🇸 on September 11, 2017

Verified Purchase

Classic text on the subject. This should be required reading for all policy-makers.

Reviewed in the United States 🇺🇸 on October 18, 2013

Verified Purchase

I was trying to figure out a framework for an organization with a volunteer component. Did help me to those ends. For the non-academic like me you'll have to pause alot and reflect every few pages to digest.

3 people found this helpful

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Top reviews from other countries

D. Seymour

Succinct and Devastating

Reviewed in Canada 🇨🇦 on April 29, 2011

Verified Purchase

A very short book that lays out, well, the logic of collective action very effectively. The counterintuitive fact that the smaller lobby groups tend to dominate the wider public is mechanically explained, and once you turn your mind to it, a lot of what goes on in politics becomes much clearer measured against Olson's theory.

cib3504

Olson really knows his stuff!

Reviewed in the United Kingdom 🇬🇧 on February 7, 2015

Verified Purchase

A great in-depth study.

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