Final answer:
An interest group is the answer to the student's question, which is an organization formed by people with shared interests to achieve higher levels of collective action and overcome common action problems like free riding.
Step-by-step explanation:
An interest group shares the same qualities as groups, but they take collective action to a higher level. These organizations are formed by individuals joining together to pursue shared interests or because they provide some intangible rewards. Interest groups often seek to overcome collective action problems by uniting members with a common goal or concern, like the NAACP's focus on civil rights and equality. Such groups can offer various incentives, be it material or solidary, to induce activity among individuals and foster cohesion. Interest groups face challenges such as free riding, tragedy of the commons, and the prisoner's dilemma, especially when they grow large. These issues are less acute in smaller groups where relationships and peer pressure help promote participation and discourage free riding. Yet, in larger organizations, these can become complex, requiring political, structural, or institutional remedies to ensure active and effective collective action.