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The Logic of Private and Collective Action

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  • Wendy L. Hansen
  • Neil J. Mitchell
  • Jeffrey M. Drope

Abstract

Since Mancur Olson's Logic of Collective Action (1965), it is impossible for political scientists to conceive of political participation without reference to his powerful argument linking numbers of participants, public goods, and participatory outcomes. What is puzzling is the poor empirical support for this argument in the domain where it should work best, namely explaining business political activity. Olson thought his arguments principally applicable to economic groups, and for the empirical development of his arguments Olson drew heavily on business interests, the most active segment of the interest group community. We explore these arguments with business political activities data by examining the statistical performance of various measures of market structure in determining business political activity, and find little empirical support. We do offer an alternative basis for business behavior lodged in both private and collective goods that preserves business rationality and also helps explain not only the amount of business political participation but the modes of business participation.

Suggested Citation

  • Wendy L. Hansen & Neil J. Mitchell & Jeffrey M. Drope, 2005. "The Logic of Private and Collective Action," American Journal of Political Science, John Wiley & Sons, vol. 49(1), pages 150-167, January.
    • Handle: RePEc:wly:amposc:v:49:y:2005:i:1:p:150-167
    DOI: 10.1111/j.0092-5853.2005.00116.x
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    Cited by:

    1. Bombardini, Matilde & Trebbi, Francesco, 2012. "Competition and political organization: Together or alone in lobbying for trade policy?," Journal of International Economics, Elsevier, vol. 87(1), pages 18-26.
    2. Anil R. Doshi & Glen W.S. Dowell & Michael W. Toffel, 2011. "How Firms Respond to Mandatory Information Disclosure," Harvard Business School Working Papers 12-001, Harvard Business School, revised Jun 2012.
    3. Manav Raj, 2021. "A house divided: Legislative competition and young firm survival in the United States," Strategic Management Journal, Wiley Blackwell, vol. 42(13), pages 2389-2419, December.
    4. Kim Jin-Hyuk, 2008. "Corporate Lobbying Revisited," Business and Politics, De Gruyter, vol. 10(2), pages 1-25, September.
    5. Yakovlev, Andrei & Freinkman, Lev & Ershova, Nina, 2018. "Channels of dialogue between international businesses and national governments: The implications for domestic reforms and international relations in the case of Russia," BOFIT Policy Briefs 5/2018, Bank of Finland Institute for Emerging Economies (BOFIT).
    6. D. G. DeBoskey & Yan Luo, 2018. "Recent trends in corporate political disclosure for a sample of S&P 500 firms: a new and emerging corporate disclosure area," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 15(3), pages 176-184, August.
    7. Oliver Huwyler, 2020. "Interest groups in the European Union and their hiring of political consultancies," European Union Politics, , vol. 21(2), pages 333-354, June.
    8. Greiner, Michael & Lee, Jaegul, 2020. "A supply-side approach to corporate political activity: Performance consequences of ideologically driven CPA," Journal of Business Research, Elsevier, vol. 115(C), pages 25-37.
    9. Cory, Jared & Lerner, Michael & Osgood, Iain, 2021. "Supply chain linkages and the extended carbon coalition," LSE Research Online Documents on Economics 122459, London School of Economics and Political Science, LSE Library.
    10. Lynn Bennie & Patrick Bernhagen & Neil J. Mitchell, 2007. "The Logic of Transnational Action: The Good Corporation and the Global Compact," Political Studies, Political Studies Association, vol. 55(4), pages 733-753, December.
    11. Cesi Cruz & Benjamin A. T. Graham, 2022. "Social ties and the political participation of firms," The Review of International Organizations, Springer, vol. 17(1), pages 117-142, January.
    12. Egerod, Benjamin C. K. & Aaskoven, Lasse, 2024. "Why don't firms lobby? How information shapes the market for lobbying services," Working Papers 347, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    13. Simona Giorgi & Massimo Maoret & Edward J. Zajac, 2019. "On the Relationship Between Firms and Their Legal Environment: The Role of Cultural Consonance," Organization Science, INFORMS, vol. 30(4), pages 803-830, July.

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