LOGIC BEHIND COLLECTIVE ACTION

Every individual is contributing to the productiveness of the society.Adam Smith says-"every individual intends only his own gain,and he is in this,as in many other cases,led by an invisible hand to promote an end which was no part of his intention.Nor is it always the worse for the society that it was no part of(individual's intended end).By pursuing his own interest he frequently promotes that of society more effectually than when he really intends to promote it."

The problem of the back of the invisible hand is known as the Prisoner's Dilemma.This was defined by Mancur Olson in his book Collective Action in 1965.

The basic question is still related to the logic behind the collective action.Pareto says-"if all the individuals refrained from doing something ,every individual as a member of thecommunity would derive a certain advantage.But,now if all individuals less one continue refraining from doing something ,the community loss is very slight ,whereas the one individual doing that thing makes a personal gain far greater than the loss that he incurs as a member of the society.

But,logic of collective action says-"if I am narrowly self-interested ,I would be preasuambly not refrain from doing something.I may refrain but only if my not refraining would adversely affect the behavaviour of enough others to reduce my advantage from communal refraining by more than it would cost me not to refrain."