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Cooperation

At least since Mancur Olson's The Logic of Collective Action (published in 1965), cooperation between human agents has generated an enormous academic literature, almost an industry in itself. In a famous phrase, Olson said that unless a group is small or there is some other coercive mechanism, self-interested people will not act to achieve their common or group interests. This particular problem of cooperation to which Olson refers has become known as the collective action or free-rider problem.

The problem of cooperation had been recognized by others, of course. David Hume suggested that although two farmers might agree to dig a drainage channel between two fields and would be confident that each would turn up on the allotted day to help dig the channel, 100 people would not turn up to drain a field. Although it is in everyone's interests to have the field drained, it is also in everyone's interest not to contribute. Where many people are involved, each person can figure that if he or she does not turn up (a) no one will notice, and (b) there will still be enough others to successfully carry out the collective act. However, if everyone thinks like that, no one will turn up, and then everyone will be worse off. When there are only a few people involved, neither condition will hold and cooperation can occur.

Of course, cooperation does occur between large numbers of people, and this “puzzle” has generated the large literature. First, we note that Olson makes clear that the problem occurs for self-interested people; other-oriented people might still turn up (we consider that below), but first let us see how cooperation might occur even if people are fully self-interested.

The Collective Action Problem

The collective action problem is a problem, but not an insurmountable one. Olson himself provides solutions. Selective incentives can be offered to self-interested people. These might be side payments given to those who turn up, or they might consist of nonmaterial benefits, such as reciprocal friendliness. The degree of interaction between group members is also as important as small size. Although smaller numbers of people find it easier to cooperate than do large numbers, large groups can consist of smaller groups. Often in collective enterprises, groups of friends agree to meet and go along to the event together. Collective organizations are created with subgroups; armies consist of regiments, broken down into units or platoons. It is often said that soldiers do not fight for their country but for their comrades, and armies try to instill a sense of mission and loyalty within their constituent units for precisely that reason. Hence, interaction is more important than group size in itself. Face-to-face interaction among a small group of people may lead to subgroup mobilization no matter how large the wider group, thus overcoming the perceptibility problem mentioned earlier.

Often, coordinating activities is a key issue. To overcome coordination difficulties, some actor or set of actors may need to step in. These coordinators provide a key role in ensuring both that individuals work together and that subunits within larger groups also cooperate. It is often easier to get people to work together to provide a one-off or so-called step public good because all can work toward a specific aim—such as digging a drainage ditch. But often tasks are ongoing—the field might need constant work to keep it drained—and getting people to cooperate in the long run is harder. Here, reciprocity is the key. If I act to help you, and then you act to help me, I am more likely to reciprocate next time round. For long-term tasks, people often create rosters so that each person knows when he or she is expected to contribute, each person can see that everyone else is doing their turn, and there are no free riders. In that way, cooperation is ensured.

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