In order to overcome the ________,interest groups often provide ________ to their members.
A)free-rider problem; collective goods
B)free-rider problem; selective benefits
C)principal-agent problem; collective goods
D)principal-agent problem; selective benefits

Question

Quizplus · Accepted Answer

The free-rider problem refers to the difficulty of motivating individuals to contribute to a collective good when they can receive the benefits of that good whether or not they contribute. Interest groups often provide selective benefits to their members in order to overcome this problem, i.e. benefits that are only available to those who contribute. Collective goods, on the other hand, benefit all members of the group regardless of their individual contributions, making them less effective for overcoming the free-rider problem. The principal-agent problem refers to the difficulty of ensuring that agents (in this case, interest group leaders) act in the best interests of their principals (the group members), but this is not directly related to the provision of goods or benefits to members.

In Order to Overcome the ________,Interest Groups Often Provide ________

In Order to Overcome the ,Interest Groups Often Provide