Economics by Good Neighbors: Collective Action Problems
Collective Action Problems
Though I could tell you lots of stories about my fantastic neighbors, this one will focus on the tail-end of a blood sugar walk (Notes 1). I turned the corner to find my neighbor, Scott (name changed), poking into a large puddle at the edge of the curb with a stick. I knew immediately what he was doing: being a hero.
Every time it rains in Chicago, the same thing happens: roadsides flood, corners become impassable, and pooling water sometimes even limits parking. The cause? Storm drains clogged with leaves, trash, and debris.
This is a textbook example of what economists call a collective action problem.
It’s a hassle for pedestrians and a hazard for anyone with limited mobility, like myself. Yet most people simply get their shoes wet or avoid walking altogether. As I noticed the issue cropping up in more locations, I also realized something else: many of the worst puddles formed right in front of business entrances. (See pictures: Starbucks, Nando’s, Massage Envy dozens more could have been included.)
Pedestrians and business owners alike have an incentive to solve the problem. But the fact that others might benefit more than me often causes each person to hesitate, hoping someone else will step up first.
Economic Theory
There are two primary ways economists approach collective action problems. Most effective solutions rely on one or the other or, sometimes, a mix of both. In short, to solve a collective action problem you define who is responsible.
Let’s look at snow removal, another weather-related challenge that Chicago actually handles pretty well using two different strategies.
1. Make it the Government’s Problem (Collective Taxation and Systemic Action):
In the event of a snowstorm, Chicago sends out plows en masse. They quickly clear highways and arterial roads, salting the pavement to ensure traffic can keep flowing. This is funded by taxes and managed centrally.
2. Make it the Individual’s Problem (Assignment and Liability):
For Chicago’s sidewalks, it’s a different story. Chicago law holds property owners responsible for clearing snow within 15 hours. This applies to both homeowners and businesses. The result? Shovels come out, and most people take care of their patch. (Admittedly, I have some neighbors who don’t. But overall the system works fairly well.)
Transparency and Accountability:
Both of Chicago's approaches to snow removal include ways to address free riders, the core reason people fail to act or are encouraged not to.
Streets: The Chicago Plow Tracker not only shows that the city is actively managing snow removal but also provides tools to request service or check if your car was towed for blocking plows. (Note: the link will show you the site, but the interactive map fires up when there’s snow.)
Sidewalks: If a neighbor hasn’t cleared their sidewalk within 15 hours, you can report the violation directly to the city.
Transparency (plow tracker) and individual accountability (reporting violations) are not perfect solutions. But they are means to galvanize people to be apart of the solution. This breaks the negative loop of collective action: failure to take action.
Conclusion: Scott’s a Hero
Unfortunately, Chicago hasn’t found the right solution for it’s drains just yet.
But there’s another way to address collective action problems, at least in the short term: individual volunteerism. Scott didn’t have a city contract or an ordinance to follow. He just wanted to cross the street without soaking his shoes and help the next person do the same. Sometimes, solving a collective action problem starts with one person picking up a stick. Sometimes these actions act as a catalyst, inspiring others to take action themselves. Case and point: after running into Scott I grabbed an old broom and hobbled to a nearby drain that had frustrated me on my walk.
You're a hero, Scott.
A picture of Scott . . . basically.
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Notes
(1) I’d been told by my Diabetes Nurse Educator that walking for 12 minutes lowered blood sugar by 1 mg/dL every minute. I can’t find an exact citation but this has a few good references that are similar.