The idea that groups can often make better decisions than individuals has fascinated psychologists, economists, and business leaders for decades. Known as the “Wisdom of the Crowds”, this concept suggests that when individual opinions are aggregated, the result can be surprisingly accurate. Yet, there is a darker flip side – the “Lunacy of Lemmings” – when group dynamics lead to systematic errors, herd behavior, and collective blind spots.
This paradox has been explored by mathematicians like Edward O. Thorp, as well as behavioral scientists such as Daniel Kahneman, whose book Noise delves into the flaws of judgment in groups and individuals. Understanding when group opinions are useful – and when they are not – is crucial for leaders, investors, and everyday decision-makers.
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