28
Figure 10. A Lumpy Good with a Chicken Preference Function
Individual Preference and the Composition of Olson's Groups.
According to Olson (1965: 23-24 and 49-50), privileged groups have at least one
i
i
i
member for whom A = V - C > 0, where A is the overall computation of individual i's
i
advantage from the good, V is the individual's utility from its supply of the good, and C is the
individual's contribution of the good in terms of costs. These individuals correspond to the
x
y
calculation U (") > U ("). For goods that are not exceptionally lumpy, these individuals have a
privileged or special privileged preference function and will therefore be willing to contribute
some supply of the public good to its group even if it is the sole provider. Thus, as Olson
stipulates, the group is privileged and the public good is supplied.