Collective Action Problems
We are social animals that rely heavily on cues from others in order to make decisions.
As a result we are at the mercy of a peculiar dilemma: collective action problems. Collective action problems are situations in which everyone would be better off acting in a certain way, but they do not due to incentives born by the collective.
Jonathan Haidt recently introduced me to this sociological concept when describing why children excessively engage in social media. Overindulgence is not in any individual child’s personal interest but because all of their peers are connected via these networks, stepping away is costly.
Collective action problems can arise in any group but logically, the less reasonable and wise the collective, the more prevalent they become.
A couple of current examples:
- Individuals sacrificing their health by overexposing themselves to stress — in order to keep up with an increasingly frantic economy.
- A shortage of skilled workers in a society that celebrates higher education as as status symbol and insurance policy.
- Increasingly indebted individuals due to societal pressure to maintain status through consumption
