Collective action problem arises when peopleindependent actions produce a worse outcome than they would if they could finda way to coordinate. Collective action problems are diverse but one of themost common occurs when everyone in a group share a goal, but achieving thegoal requires only some members of the group to contribute (Anomaly). Whatprofessor Anomaly describes in his description is that basically, collective actionproblem is a situation where all members in a group have a choice between twoor more alternatives, but rationally, (in the Economic Sense, to maximize one’sexpected return (Total Expected Benefits Less Total Expected Costs) ( McGuire)).Their election may differ from their collective preferred elections. Therational election of an individual may create a cost to the group. Collective actionproblem occurs when individuals would all benefit from a certain action.
Thenrational individual accepts this as a collective action and the cost of theaction is shared among the group. Mainly the collective problem exists when thepeople do not have stimulus to act. Due to the diversity of types of collectiveactions, it’s important to have in mind that not all of these can be solved.Wecan split collective action problem into general categories. The first type,the fail of coordination in a group, when individuals have a unique preferenceon how to take action, but each individual would rather take a less preferredcourse if everyone in a group agree to take the same action.
For example, in afield of grass a couple of shepherds want to feed their sheep, but if eachshepherd wants to let their sheep eat as much as they want, grass woulderadicate on that field. But if they regulate and agree to let their sheep eachcertain amount of grass, it could be potentially functional, but as this isonly based on trust, each individual potentially can act selfishly and lettheir sheep eat more, thinking it would not affect if only one of them is doingit, but if all the shepherd arrive to the same reasoning, then grass willeventually eradicate. The Second type is when there is failure to achieve aresult everyone prefers over the result obtained as consequence of everyonewanted to achieve their most preferred result without actually paying for it. Forexample, an intersection with a four way stop sign. The four lines will pile upquickly form each direction. Drivers have no control of what is going to happenuntil reaching the front of the line. Every driver will try to cross the intersectionas soon as possible.
Increasing the traffic as the four driver in the frontlines battle trying to go first or waiting for another to go first.