IRMA

Institute of Rural Management Anand

Course Name: Collective Action and Programme: PGDM-RM41 and FPM-RM19
Cooperation
Date: 27 September 2021 Term IV Roll No. I 2 4 .

Mid Term Examination (Open Book)

Duration of Exam: 2 Hrs 30 Min Weightage: 20 percent Total Marks: 30

1. In a building society there are four flats. They have decided to contribute Rs. 1000 per month as
maintenance charge. But one of the flat owner declines to pay it as s/he does not stay there. It
has enraged all other flat owners and they decided to not maintain any of the services as a mark
of protest. They could afford sharing the contribution of one flat owner
(Rs.1000 /month) among
themselves, but they decided not to contribute at all, even their own share..
a. Is there any logic of such apparently irrational behavior?
b. What are the circumstances when the feuf owners would have decided to pay their own
part and also share the amount not provided by the fifth owner?

5+5

2. Government of India has taken a very important step in

containing the spread of coronavirus by
declaring lockdown of the nation. In the lockdown people have to stay inside home so that they
do not get affected by others and they do not
affect others.
The lockdown would be successful
only when all the citizens maintain strict self-isolation inside their home. But it is difficult in
densely populated areas where living space is very small. People want to go out their home out
of frustration.They would also like to go out due to anxiety over food and other basic
necessities. Moreover, people believe that if some
are staying inside then the purpose of
lockdown would be satisfied. Explain the failure of lockdown from the
perspective of failure of
collective action.
a. What kind of good is containment of
b. What kind of public policy is lockdown?
coronavirus
?
C. Explain the probability distribution of success of lockdown (staying inside
cost of lockdown.
home) and the

d. Explain when and why lockdown would not be successful.

e. Suggest measures to make lockdown successful from collective action
perspective
2+2+4+4+3
3. Why do we not have a market for clean air? Can we create a market for clean air? What are the
major challenges for creating a market for clean air?
1+2+2

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