ABSTRACT
This chapter focuses particularly on the emergence of business groups, which are widely seen as being dominant both numerically and politically in the EU arena (see Aspinwall and Greenwood in Chapter 1). The chapter initially accepts the proposition that there is a collective action issue to be addressed. Why do firms join together in an attempt to secure an outcome that may be enjoyed by the ‘selfish’ firm without the investment of effort or resources? Why not free ride? 1
