Misjudgment Exacerbates Collective Action Problems
Joshua Lewis (New York University), Shalena Srna (University of Michigan), Erin Morrissey (New York University), Matti Wilks (University of Edinburgh), Christoph Winter (Instituto Tecnológico Autónomo de México and Harvard Univeristy) and Lucius Caviola (Global Priorities Institute, University of Oxford)
GPI Working Paper No. 2-2024
In collective action problems, suboptimal collective outcomes arise from each individual optimizing their own wellbeing. Past work assumes individuals do this because they care more about themselves than others. Yet, other factors could also contribute. We examine the role of empirical beliefs. Our results suggest people underestimate individual impact on collective problems. When collective action seems worthwhile, individual action often does not, even if the expected ratio of costs to benefits is the same. It is as if people believe “one person can’t make a difference.” We term this the collective action bias. It results from a fundamental feature of cognition: people find it hard to appreciate the impact of action that is on a much smaller scale than the problem it affects. We document this bias across nine experiments. It affects elected policymakers’ policy judgments. It affects lawyers’ and judges’ interpretation of a climate policy lawsuit. It occurs in both individualist and collectivist sample populations and in both adults and children. Finally, it influences real decisions about how others should use their money. These findings highlight the critical challenge of collective action problems. Without government intervention, not only will many individuals exacerbate collective problems due to self-interest, but even the most altruistic individuals may contribute due to misjudgment.
Other working papers
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Even our most mundane decisions have the potential to significantly impact the long-term future, but we are often clueless about what this impact may be. In this paper, we aim to characterize and solve two problems raised by recent discussions of cluelessness, which we term the Problems of Decision Paralysis and the Problem of Decision-Making Demandingness. After reviewing and rejecting existing solutions to both problems, we argue that the way forward is to be found in the distinction between procedural and substantive rationality…
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The long-run relationship between per capita incomes and population size – Maya Eden (University of Zurich) and Kevin Kuruc (Population Wellbeing Initiative, University of Texas at Austin)
The relationship between the human population size and per capita incomes has long been debated. Two competing forces feature prominently in these discussions. On the one hand, a larger population means that limited natural resources must be shared among more people. On the other hand, more people means more innovation and faster technological progress, other things equal. We study a model that features both of these channels. A calibration suggests that, in the long run, (marginal) increases in population would…