Defective Agents

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I will argue there is no exact problem to collective action but the biggest consequence of collective action is defective agents. Anytime I refer to defective agents in the rest of the paper, I will be discussing those who do not maximize utility for society and rather defect from the norm to maximize their own individual utility. I argue that collective action only works effectively if all group members pay their fair share for the common interests of the group. I argue free riding of public goods and the selfish use of available common goods are the main actions performed by defective agents that make collective action a problem. I argue that collective action needs individuals to maximize group utility over personal utility in order to …show more content…

Since it is a one-shot game, people believe it will always be better to maximize their own utility rather than sacrifice some of their profit for the greater good thus becoming defective agents. Defective agents in this situation ultimately stop the public good from being created or operating at optimal standards because they create unfair conditions amongst the group and without them, the good is not feasible. An example of this is a group of four people deciding to finance a museum as a public good. No one member of the group has a desire to finance the museum solely but one person’s contribution is sufficient for the construction of the building. As a defective agent, I argue no one will want to finance the museum and it will never be built because they will take the free riding approach. Furthermore, it would not provide the most utility for any one person if they do contribute so they will always defect to protect themselves as I argue for the common knowledge of rationality. A solution to the agents continuously defecting is to introduce punishments into the game. If someone does not cooperate, they will gain a punishment that will cost more than any utility they profit from not cooperating. Permits would be optimal because if someone does not obtain the permit by cooperating with society, they cannot use the good, slightly changing it to a club good; a good that is excludable …show more content…

Common goods are rivalrous and non-excludable, meaning everyone can use these goods but there is only a limited supply. The most common problem discussed is the tragedy of the commons in which people selfishly use common goods because they can. An agent will continuously ask what is the utility of me taking more and if the answer maximizes their own utility, they will choose that option. A great example of this is a pasture that is provided as a common good to farmers with grazing animals. It is rivalrous because the grass can only be consumed by one animal and not by another but it is non-excludable because the farmers cannot stop another farmer’s animal from grazing. The farmers want to maximize their own utility by adding as many animals as possible so they will ask the question, “What is the utility of me adding one more animal to my heard?” There will either be a positive component of selling an additional animal for the farmer individually or the negative component of overgrazing shared by all the farmers. If the agent is rational, they will become a defective agent and maximize their individual utility by selling another animal because they are in a system that compels them to increase the herd. A solution to the tragedy of the commons is to introduce privatization and split the commons accordingly among the group. There will be a process to

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