If a special interest group represents 10% of society and gets a public policy passed that costs society $1 million and benefits that special interest group $1 million, the net payoff for the special interest group will be:

Question

Quizplus · Accepted Answer

The special interest group benefits by $1 million, but since they represent only 10% of society, they effectively bear only 10% of the $1 million cost, which is $100,000. Thus, their net payoff is $1 million - $100,000 = $900,000.

If a Special Interest Group Represents 10% of Society and Gets