Professional sports teams will sometimes seek public subsidies for stadium financing projects that produce large benefits for a relatively small number of fans and impose small costs on a relatively large number of people. Sometimes these efforts to secure public funding are successful even though the decision is not efficient. This is an example of ____.

Special interest effect in economics refers to an organized group within the society using its influence to gain advantage over larger set of people .

Ethics requires the that a decision is ethical when it gives benefits to a larger group of people and harms the minority,but special interest effect takes an opposite direction to ethical behavior.

All in all, the amount of discomfort caused to a relatively larger number of people does not matter,what is crucial is for the special interest elite to accomplish their aims and objectives whoever ox is gored.

ogechukwubenedict ogechukwubenedict · Answer 2 · 2020-03-27T19:38:10+01:00

Answer: the special-interest effect

Explanation: The special-interest effects proposes that most sectors grow because there are concentrated beneficiaries and diffused cost bearers which can contribute to economic inefficiency in the public sector. It defines the outcome of a process wherein concentrated, small number of individuals obtain a government program or policy that allows them profit hugely at the expense of a larger number of persons who small costs are imposed upon.

By seeking subsidies for financing stadium projects that produce large benefits for small number of fans while imposing small costs on a relatively larger number of people, the special-interest effect is seen in play here.