Title: Collective action problem | Britannica
Headings: Collective action problem
Collective action problem
The challenges of common goods
Game theory

Content: Of course, altruistic individuals may also play a part in collective action. Get a Britannica Premium subscription and gain access to exclusive content. Subscribe Now
Collective action problems have often been represented by simple game theory. The simple, one-shot “ prisoner’s dilemma ” game represents a series of more complex situations, where individual rational action leads to a suboptimal outcome. It would be in the interests of both players to cooperate, but they end up not cooperating because they can see the advantages of free riding and fear the dangers of being taken for a ride. It is well known among game theorists that once the two-person game is repeated over and again, there is a multiplicity of stable equilibriums, of which some involve cooperation and some do not. If the game is played by more than two people and network effects are allowed (that is, players can see how others are playing with third parties), then one should expect both cooperation and free riding. Thus, game theory shows that collective action is indeed a problem. People do not automatically work together to promote their collective interests, but neither is it impossible. Indeed, depending on the conditions, one should expect varying levels of collective action.