We refer to situations in which individuals need to act collectively to reach solutions that will make everyone better off as:

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Collective-action problems refer to situations where individuals have a common interest, but pursuing that interest individually could lead to a less favorable outcome than if they acted collectively. This can lead to a situation where individuals do not take action because they believe others will take care of the problem (free-rider problem) or where there is a lack of trust and coordination among individuals. Moral hazard problems refer to a situation where one party takes risks knowing that the other party will bear the cost, while public-mind problems do not refer to a common concept in social and economic literature.

We Refer to Situations in Which Individuals Need to Act