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Q. 9

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Principles of Economics
Found in: Page 441

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Short Answer

How can a small special interest group win in a situation of majority voting when the benefits it seeks flow only to a small group?

By lobbying and influencing candidates

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Step by Step Solution

Step 1. Special-Interest Groups.

An organization with members who have an interest in a specific area comes together and cooperates to influence policies in their area of interest.

Step 2. Small-interest group to win in a majority voting.

A small special interest group may be able to succeed and influence policies in their favor even in majority voting. They are able to do so because their bargaining power is greater than individuals, and these individuals often choose to remain uninformed because hig cost of gaining knowledge. The cost is spread over all members in the country, people do not oppose these policies because of rational ignorance.

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