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

Question

Quizplus · Accepted Answer

The free-rider problem refers to individuals benefitting from the actions of a group without contributing to its efforts, leading to a lack of incentive for individuals to join or support the group. To overcome this problem, interest groups often provide selective benefits that are available only to members who contribute to the group, such as discounted services or exclusive access to events. Collective goods, on the other hand, are public goods that are available to everyone regardless of their contribution, making it difficult for interest groups to compel individuals to join or support their efforts. The principal-agent problem refers to the conflict of interests that arises between the interests of a group (the principal) and the person or entity that acts on behalf of the group (the agent), such as a lobbyist or elected representative. While this problem may also be addressed through selective benefits, it is not directly related to the free-rider problem.

In Order to Overcome the ________ Problem, Interest Groups Often