Groupthink

Studies suggest that groups tend to make better decisions than their members in isolation. However they perform less effectively than the attributes of all their members would suggest. Their skills are not strictly cumulative. Poor decision-making by committees has consequently been characterized as resulting from groupthink. The cohesiveness of the group places pressure on dissenters to confirm to the consensus view. An illusion of unanimity and correctness is developed, fostering a reluctance to evaluate alternative policies. Outsiders in disagreement are then negatively stereotyped. Groups subject to groupthink are readily dominated by a directive leader.

It has been suggested that central bank committees, responsible for monetary policy, were subject to groupthink and were consequently slow to respond to rapidly changing economic conditions.