I recently came across a statement made by Warren Buffett in a 1965 letter to his Partnership where he mentioned group decision making: “My perhaps jaundiced view is that it is close to impossible for outstanding management to come from a group of any size with all parties really participating in decisions.” This made me reflect on the fact that the overwhelming majority of the literature and research around behaviour and decision making produced in recent decades has been about how individuals make choices, but in virtually every walk – politics, business, family and investing – decisions are frequently made by groups of people. Despite this little time appears to be spent seeking to understand how groups function. This is a severe oversight. If we thought individual choice was confusing and problematic, just wait until we start putting people together.
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