A Social Custom Model Of Collective Action

Abstract Conventional economic analysis does not explain satisfactorily the logic of collective action when the outcomes of such action possess public good characteristics. In the current paper we attempt to build on the work of Akerlof (1980) and Schelling (1978) in developing a social custom model of collective action. We allow for individuals to be heterogeneous and find that this gives a rich class of possible equilibrium outcomes. In particular, we show that the degree of heterogeneity amongst the population has important implications for the level of critical mass required before collective action can be sustained. Finally, we consider the empirical content of the theoretical models.