Collective Action and the Fallacy of the Liberal Fallacy

Abstract

The problem of whether the rational, self-interested individual will voluntarily subscribe to a large group providing collective benefits is examined, using the perspectives of Hardin's application of game theory and Olson's application of economic theory. The arguments in each case are held to be unsatisfactory, and the same analysis cannot automatically be applied to all problems involving collective action. The subscription to large groups normally represents a distinct sub-class of problems, the solution to which, contrary to the established wisdom, is that the rational, self-interested individual with a net benefit (together, perhaps, with the irrational one with a net loss) will voluntarily subscribe to a group providing a collective good.