1. The Logic of American PoliticsThe Logic of American PoliticsSlide 3The Importance of Institutional DesignConstitutions and GovernmentsConstitutions and Governments: Authority versus PowerConstitutions and Governments: Institutional DurabilityConstitutions and Governments: The Political System’s LogicCollective Action ProblemsCoordinationPrisoner’s DilemmaPrisoner’s Dilemma: Free-Rider ProblemPrisoner’s Dilemma: Tragedy of the CommonsSlide 14The Costs of Collective ActionThe Costs of Collective Action: Transaction CostsThe Costs of Collective Action: Conformity CostsDesigning Institutions for Collective Action: The Framers’ ToolkitRepresentative GovernmentRepresentative Government: Majority Rule versus the RepublicRepresentative Government: PoliticiansThe Work of GovernmentMitigating “Popular Passions”Slide 241. The Logic of American PoliticsThe Logic of American Politics•Choices invariably breed conflict, for example: –conflicting interests –conflicting values –conflicting ideas about how to allocate limited resourcesThe Logic of American Politics•Politics: the process through which individuals and groups reach agreement on a course of common, or collective, action—even if they disagree on the intended goals of that action. •Politics matters because each party need to find a solution to the conflict•Politics involves bargaining and compromise.•Reconciling preferences (givens) represents a fundamental problem of governanceThe Importance of Institutional Design•Institution=a structure or mechanism of social order governing the behavior of a set of individuals within a given community•Effective political institutions have a set of rules and procedures for reaching and enforcing collective agreements. –Examples of rules and procedures that promote collective action:•The ConstitutionConstitutions and Governments•A Constitution establishes a nation’s governing institutions and the set of rules and procedures these institutions must (and must not) follow to reach and enforce collective agreements. –Formal (eg. United States) or informal (eg. Britain)•A government consists of these institutions and the legally prescribed process for making and enforcing collective agreements.Constitutions and Governments: Authority versus Power•Authority is the acknowledged right to make particular decisions. Offices confer specific authority and responsibilities on the occupants. •Power is an officeholder’s actual influence with other officeholders and, as a consequence, over the government’s action.Constitutions and Governments:Institutional Durability •Institutions tend to be stable and resist change.–Institutions persist beyond the tenure of office holders who occupy them.–The people who are affected by them make plans based on the expectation that current arrangements will remain (the status quo).–Those who seek change typically cannot agree on alternatives.Constitutions and Governments:The Political System’s Logic•Core values embedded in American institutions include–periodic elections–protection of individual liberties–principles of how members of a community should engage one another politically to identify and pursue their common goals (political engagement)•Collective actionCollective Action Problems•Successful collective action challenges participants to figure out what to do and how to do it, and involves–comparing preferences–agreeing on a course of action (alternative) that is preferable to doing nothing–implementing and enforcing the collective choiceCoordination•Arise from uncertainty and insufficient information•May prevent collection action even when majority agrees on a course of action•Focal points= a prominent cue that helps individuals recognize the preferences of others with whom they want to cooperate•Often simply requires direction and informationPrisoner’s Dilemma•Arises when individuals privately calculate that they would be better off by not contributing to the collective action EVEN when they completely agree with its purpose•When individuals, who ultimately would benefit from cooperating with each other have a powerful incentive to break from the agreement and exploit the other side•Often requires monitoring and threat of coercionPrisoner’s Dilemma: Free-Rider Problem•Free-rider problem = the temptation to defect from agreements by withholding contribution to group’s undertaking while enjoying the benefits of the collective effort•With increasing size, individual contributions to the collective action become increasingly inconsequential—hence individuals realize their individual contribution will not affect the collective success or failure•But everyone has this option, and if everyone takes it then no successful collective actionPrisoner’s Dilemma: Tragedy of the Commons•(Costless) consumption of a public good results in its ruin•Large numbers of participants encourages each to renege on contributing to public good (free-rider problem) but still consume the public good which becomes destroyed•Examples: fishing industry, cattle raising, InternetCollective Action ProblemsThe Prisoner’s Dilemma•Often requires monitoring and threat of coercion •free riders•tragedy of the commons•Common solution= institutions –Regulation–PrivatizingCoordination•problem increases with size of group•Often simply requires direction and information•Common solution= institutions (although not always necessary)The Costs of Collective Action•Collective action offers participants benefits they cannot achieve on their own.•Associated costs: –monetary contribution (eg. taxes)–overhead costs (costs for enforcement) –transaction costs –conformity costsThe Costs of Collective Action: Transaction Costs •Transaction costs: the time, effort, and resources required to make collective decisions.•They can be a barrier to political agreements. •Transaction costs increase as the number of participants increase. •High transaction costs are sometimes instituted to make certain activities more difficult. –Constitution (2/3 Congress and ¾ states)The Costs of Collective Action: Conformity Costs•Conformity costs: the difference between what any one party prefers and what the collective body requires.•Losers in politics: the parties whose preferences receive little accommodation but who must still contribute to the collective undertaking.–Eg.