When a group of people stand to gain from an action that is not rational for any of the members to undertake individually,it is referred to as a:

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The collective-action problem arises when a group of people share a common interest, but it is difficult to achieve that interest because the individuals in the group are incentivized to act in their own self-interest rather than working together towards the common goal. Therefore, it is not rational for any one individual to take action independently since it would not result in the desired outcome for the group. Examples of collective-action problems include climate change, public goods provision, and collective bargaining. The free-rider problem refers specifically to situations where individuals can benefit from a public good without paying for it, which exacerbates the collective-action problem. The moral hazard problem refers to situations where individuals or organizations are incentivized to take risks because they do not bear the full cost of those risks. The societal-wellbeing problem is not a commonly used term in political science, although it could refer generally to any situation where the well-being of society as a whole is at stake.

When a Group of People Stand to Gain from an Action