When Groupthink Goes Wrong -Mental Model 057

Groupthink

The desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

 

Example: In 1637, despite having little intrinsic value, the price of a single tulip bulb sold for more than 10 times the annual income of a skilled craftsman. The price rose only because everyone placed an irrational value on them.

 

Wisdom: “Whenever you find yourself on the side of the majority, it is time to pause and reflect.” — Mark Twain

 

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