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Groupthink

The Wisdom of Crowds

Groupthink is a failure of collective judgment in which a cohesive, like-minded group becomes insulated from challenge and increasingly certain that its shared view must be right. The book’s account distinguishes it from simple conformity: groupthink reshapes what members consider plausible, while conformity can make a person voice agreement merely because challenging the group is difficult. The distinction matters because discussion does not necessarily correct a bad decision; under groupthink, it can close minds instead of opening them.

Definition and Conditions

Psychologist Irving Janis used the term after studying American foreign-policy failures, including the Bay of Pigs invasion and the failure to anticipate Pearl Harbor. In the book’s account, groupthink is fostered when decision makers are too much alike in their worldview and mental habits. A homogeneous group can become cohesive more readily than a diverse one, but that cohesion may leave members more dependent on the group and more insulated from opinions outside it.

This insulation encourages a shared illusion of invulnerability, rationalization of counterarguments, and a conviction that dissent is of little use. The danger is not simply that a group lacks information; it is that members become less able to recognize contrary information as relevant. A discussion conducted within a narrow common frame can therefore reinforce the group’s beliefs while making its judgment less dependable.

The Bay of Pigs Example

The Bay of Pigs invasion illustrates the mechanism in a consequential setting. The Kennedy administration planned and carried out the strategy without seriously consulting people skeptical of its chances. The same people who developed the operation were also asked to evaluate whether it would succeed, while the few who expressed caution were quickly silenced. Neither the CIA’s intelligence branch nor the State Department’s Cuban desk was consulted about the plan.

That narrow deliberation left basic facts about Cuba in 1961 neglected: Fidel Castro’s popularity, the strength of the Cuban army, and even the size of the island. The invasion was premised on the idea that 1,200 men could take over all of Cuba. The administration also persuaded itself that the world would believe the United States had no part in the operation, although American involvement was an open secret in Guatemala, where Cuban exiles were being trained. These details show how a cohesive planning group could proceed without adequately testing assumptions against available knowledge.

How Apparent Consensus Becomes Real

Groupthink, as presented here, need not begin with an explicit ban on dissent. Its force lies in making dissent seem improbable in the first place. Historian Arthur Schlesinger Jr. described the meetings around the Bay of Pigs as taking place in a “curious atmosphere of assumed consensus.” An appearance of agreement can precede genuine agreement; as the group’s sense of cohesion grows, members’ doubts may dissolve and the appearance can become reality.

The process is strengthened when participants already share a mind-set. Information that challenges the prevailing view may be left out or dismissed as obviously mistaken. Members then leave discussion with their original beliefs reinforced and with greater confidence that they are right. Under these conditions, deliberation does not perform its usual promise of testing ideas against one another. It narrows the range of ideas that can be taken seriously, making a sound collective decision unlikely.

Diversity and Collective Judgment

The book sets this failure against a broader account of what makes groups capable of good judgment. Its four conditions for a wise crowd are diversity of opinion, independence of judgment, decentralization, and aggregation: individuals need private information or perspectives, freedom from having their opinions determined by those around them, room to draw on local knowledge, and a way to combine judgments. When a large, diverse, independent group makes estimates, individual errors can cancel out, leaving information in the aggregate. The point is not that any group is automatically wise: its members must have some relevant information to begin with.

Cognitive diversity is particularly important in small groups and formal organizations, where a few biased members can exert disproportionate influence. Markets and electorates tend to include people with differing risk attitudes, time horizons, investing styles, and information; a team, by contrast, may need to select for differing perspectives deliberately. Political scientist Scott Page’s computer simulations, described in the book, placed ten or twenty problem-solving agents with different skills into groups. Groups combining some highly effective agents with less effective ones almost always outperformed groups made up only of the most effective agents. Randomly selecting a group and letting it solve the problem could match or exceed the strategy of identifying the strongest individuals and isolating them together. Intelligence remained valuable, but intelligence alone could not supply the range of perspectives a group needed.

Why Aggregation Is Not Enough

Examples of accurate crowd judgment clarify what groupthink puts at risk, without implying that every collective verdict is reliable. After the Challenger explosion, traders’ judgments about the value of Thiokol and its competitors could combine dispersed information into a market verdict; the book presents diversity, independence, decentralization, and aggregation as the conditions that made the market smart that day. In sports betting, the final betting line is difficult for even well-informed gamblers to beat consistently, and the Mirage’s final line is described as the most reliable forecast of NFL outcomes roughly three-quarters of the time. In election forecasting, the Iowa Electronic Markets’ election-eve prices across forty-nine elections from 1988 to 2000 were, on average, off by 1.37 percent in presidential elections, 3.43 percent in other U.S. elections, and 2.12 percent in foreign elections; they also outperformed the major national polls three-quarters of the time across 596 presidential-election polls released between 1988 and 2000.

These cases depend on more than a group’s size or the mere presence of discussion. They rely on conditions that groupthink undermines: distinct judgments, access to varied information, and a mechanism that preserves rather than suppresses differences while combining them. Groupthink turns cohesion into a substitute for those conditions. The contrast also explains why a crowd’s success cannot be used to excuse a closed decision-making circle: aggregation can reveal information distributed among independent participants, while a homogeneous group can filter out precisely the doubts that might correct it.

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