Analyzing the Costs of Collective Actions for Political, Administrative, and Economic Agents to Facilitate Investment

The processes of collective action of individuals within the government organization and the formation and modification of these processes in the private sector have fundamental differences with collective action. A collective action, either in the form of an activity or in the form of a reform of an entity, both has transaction costs for agents within the process. So, a collective action within the government organization is like an institutional reform that is regarded as a voluntary public good that needs active participation of various political, administrative, and economic agents. In this paper, we tend to provide a framework for reviewing the collective action of these agents in order to facilitate investment in North Khorasan province as an example of economic reform. The data are collected by questionnaire and analyzed by statistical methods, three groups of political, administrative and economic agents active in the province. The results indicate that 10 components of values and norms, learning and repetition, group size, free riding, rent seeking, incomplete information, selective incentives, conflicts of interest, individuals and groups of beneficiaries, and heterogeneity of individuals, all have significant effect on the collective action of political, administrative and economic agents of this province. Moreover, a significant part of the collective action differences between these agents is explained by the components of transaction costs, including three categories such as search and information costs, bargaining and execution costs, and post contractual guarantee or feedback costs.