The diffusion of costs and concentration of benefits:
I. leads to rational ignorance on the part of voters.
II. is the formula to which the sugar quota owes its existence.
III. is a formula for reelection to political office.

Question

Quizplus · Accepted Answer

The diffusion of costs and concentration of benefits leads to rational ignorance because voters bear small costs individually and thus have little incentive to be informed. It explains the existence of policies like the sugar quota, where benefits are concentrated among a few, and it can be a formula for reelection as politicians gain support from beneficiaries.

The Diffusion of Costs and Concentration of Benefits