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Four Failures of Deliberating Groups

TLDR
This article found that many groups make their decisions through some process of deliberation, usually with the belief that deliberation will improve judgments and predictions, but such groups often fail, in the sense that they make judgments that are false or that fail to take advantage of the information that their members have.
Abstract
Many groups make their decisions through some process of deliberation, usually with the belief that deliberation will improve judgments and predictions. But deliberating groups often fail, in the sense that they make judgments that are false or that fail to take advantage of the information that their members have. There are four such failures. (1) Sometimes the predeliberation errors of group members are amplified, not merely propagated, as a result of deliberation. (2) Groups may fall victim to cascade effects, as the judgments of initial speakers or actors are followed by their successors, who do not disclose what they know. Nondisclosure, on the part of those successors, may be a product of either informational or reputational cascades. (3) As a result of group polarization, groups often end up in a more extreme position in line with their predeliberation tendencies. Sometimes group polarization leads in desirable directions, but there is no assurance to this effect. (4) In deliberating groups, shared information often dominates or crowds out unshared information, ensuring that groups do not learn what their members know. All four errors can be explained by reference to informational signals, reputational pressure, or both. A disturbing result is that many deliberating groups do not improve on, and sometimes do worse than, the predeliberation judgments of their average or median member.

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References
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Journal ArticleDOI

The common knowledge effect: Information sharing and group judgment.

TL;DR: The authors found that the influence of an item of information on a group judgment is directly related to the number of group members who hold that information before group discussion, and that the impact of the information, and hence the erects of distribution across members, was mediated by its impact on individual-member prediscussion judgments.
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Availability Cascades and Risk Regulation

TL;DR: Kuran and Sunstein this article analyze availability cascades and suggest reforms to alleviate their potential hazards, including new governmental structures designed to give civil servants better insulation against mass demands for regulatory change and an easily accessible scientific database to reduce people's dependence on popular (mis)perceptions.
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Escalating Commitment in Individual and Group Decision Making: A Prospect Theory Approach

TL;DR: In this paper, an explanation for escalating commitment based on prospect theory was extended to the group level of analysis, and the likelihood and degree of escalating commitment of individuals and groups were derived from the model and tested using six investment decision scenarios.
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Do Judges Vary in Their Treatment of Race

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Other people's money. The big problem in healthcare.

TL;DR: Only as a result of the Keynesian revolution did it become obvious to everyone that the problem during a slump is too little spending, not too much, and that recovery depends on persuading the public to start spending again.
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