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Content: Olson argued that individual rationality does not necessarily result in group rationality, as members of a group may have conflicting interests that do not represent the best interests of the overall group. Olson further argued that in the case of a pure public goodthat is both nonrival and nonexcludable, one contributor tends to reduce their contribution to the public good as others contribute more. Additionally, Olson emphasized the tendency of individuals to pursue economic interests that would be beneficial to themselves and not necessarily the overall public. This contrasts with Adam Smith'stheory of the "invisible hand" of the market, where individuals pursuing their own interests should theoretically result in the collective well-being of the overall market. [ 6]
Olson's book established the collective action problem as one of the most troubling dilemmas in social science, leaving a profound impression on present-day discussions of human behavior and its relationship with governmental policy. Theories[edit]
Game theory[edit]
See also: Game theory
This chart illustrates the prisoner's dilemma, one of the most famous examples of game theory. Social dilemmas have attracted a great deal of interest in the social and behavioral sciences. Economists, biologists, psychologists, sociologists, and political scientists alike study behavior in social dilemmas. The most influential theoretical approach is economic game theory (i.e., rational choice theory, expected utility theory).