Commonly offered solutions to the public goods problem involve state intervention or market design but technological and economic growth may automatically relieve some of the most intense pressures of the public goods problem. Olson’s Model Mancur Olson was an economist studying political interest groups as an example of public goods provision. When some firms lobby for legislation favorable to their industry, like tariffs on foreign imports, only some firms contribute to lobbying but every firm in the industry benefits from the legislation. We still see lots of special interest groups in politics despite this free riding, however, so how do they manage to provide these public goods? And why do the much larger group of consumers not prevent parasitic legislation from special interests.
Can Growth Solve The Public Goods Problem?
Can Growth Solve The Public Goods Problem?
Can Growth Solve The Public Goods Problem?
Commonly offered solutions to the public goods problem involve state intervention or market design but technological and economic growth may automatically relieve some of the most intense pressures of the public goods problem. Olson’s Model Mancur Olson was an economist studying political interest groups as an example of public goods provision. When some firms lobby for legislation favorable to their industry, like tariffs on foreign imports, only some firms contribute to lobbying but every firm in the industry benefits from the legislation. We still see lots of special interest groups in politics despite this free riding, however, so how do they manage to provide these public goods? And why do the much larger group of consumers not prevent parasitic legislation from special interests.