How does the Social Contract Theory address the problem of collective action?

How does the Social Contract Theory address the problem of collective action?

The Social Contract Theory addresses the problem of collective action by proposing that individuals voluntarily enter into a social contract, where they agree to give up certain freedoms in exchange for the benefits of living in a society. This contract establishes a set of rules and obligations that all members of society must follow. By doing so, the theory argues that collective action becomes possible as individuals are bound by a shared agreement and have a mutual understanding of the consequences for not fulfilling their obligations. This helps to overcome the free-rider problem and encourages individuals to cooperate and work together for the common good.