Interest Group Theory


Health Economics

  • The basic theory comes from the economic approach to political decision-making, in which government activities are viewed as processes through which wealth or utility is redistributed between individuals and groups. For some, the unit cost of collectively organizing so as to procure a transfer from others is less than the value of the transfer; for others, the contrary is the case. People can thus be seen as demanders and suppliers of transfers. Representative democracy and its agents are seen as the mechanisms through which these interests are played out and equilibria established.