answer a few questions, due tonight 7pm eastern time, i supply other student answers

student answer

(A) Unions in smaller countries don’t encompass large segments of the population as in larger countries. In larger countries unions are likely to be more concerned with society at large than with their members.

(B) Small groups thrive quickly, but weaken over time or through stability. This can result in better cooperation between labor and management in the Japanese Plant, because there’s only one union as opposed to the dozen craft unions of the British. Decisions happen slowly or can be delayed when you have larger groups. Members of small groups have unequal organizational power for collective action, and this unbalance reduces but does not disappear over time in stable societies.

(C) Encompassing organization have some incentive to make the society in which they operate more prosperous, and an incentive to redistribute income to their members with as little excess burden as possible, and to stop redistribution unless the amount redistributed is substantial in relation to the social cost of the redistribution. Olson also states, organizations will often consider increasing society’s production, as long as the burden does not exceed the expected reward, and are encouraged to bargain with other substantial groups in an effort to increase the productivity of society.

student answer

(a) What are the implications of this insight for unions in smaller versus larger countries (Sweden versus the US)? In which kind of country are unions likely to be more concerned with society at large than with their members?

The implications of this insight for unions in smaller versus larger countries is that typically in larger countries labor unions will represent a large amount of people, however it will only be a minute percentage of the labor force of the country. In a small country a labor union would represent a larger portion of the country because of its proportion of organized workers. Small countries that are unionized have a higher incentive to be more concerned with the society as a whole.

(b) What are the implications for Japanese enterprise unions versus British craft unions for their attitudes toward their employers? In a single British plant there are dozens of craft unions, but in a Japanese Toyota plant there is only the single Federation of All Toyota Workers' Union. Which type of union is likely to result in better cooperation between labor and management?

The implications for Japanese enterprise unions versus British craft unions attitudes toward employers depends on the impact it has on the society. A enterprise union will have the be more willing to help their company/ firm/ industry grow and expand, because it has a larger influence on society as a whole. However, in a craft union, there is little incentive to help the employer, this is because the union controls a small percentage of employees and would have a minute influence on profitability of the union’s industry.

(c) Why might all-encompassing labor organizations or governments that say they favor labor’s interests, fail to act in the interests of the general public or of labor? Can we say that Olson's argument is inapplicable to totalitarian or nonpluralistic governments that have a monopoly of power? Why does it break down in that he argues that groups will be more concerned with society as a whole as they control a large proportion?

All-encompassing labor organizations that say they favor labor’s interest but fail to act in the interests of the public or labor might do so because there is complete control over the labor force and the concern for the society as a whole may be lost. In a system where thoughts of complete control over, not only on labor but everything that sums up to the economy, is in place it simple to believe that managing all the details of society is simple, but there are too many unforeseen details that no totalitarian or nonpluralistic government can predict in its single minded vision. Olson argues that groups will be more concerned with society as a whole as they control a large portion because they own so much of the society that they have an important incentive to be active about how productive the society is.

student answer

(a) Unions are likely to be more concern about society than their members in countries or situations where the reduction of the value of society's output is one hundred times or more greater than the benefit it achieves for distributional coalitions. (b) Based on the above statement, the Japanese enterprise unions are likely to be more concern about workers and result in better cooperation between labor and management, since their effect on society's output is greater than the amount won by special interests. (c) Even when encompassing organizations have a great incentive to reach mutual consents, consensual bargain tends to be a great time consumer in decision making since group optimal provision requires unanimity. Based on such statement Olson argues that distributional coalitions could create ungovernable societies.