Decision-Making in Committees: A Human Fallibility Approach

Publication Type

Journal Article

Publication Date

1994

Abstract

Collective decision-making, a reflection of limited individual rationality, is an effective way to overcome judgement errors due to human fallibility. Fallibility arises because individuals have different limited capacity to absorb, process and communicate information. This paper analyzes collective decision-making in committees. Using the project-selection framework, we analyze in detail how evaluation standards and the minimum size of the acceptance consensus should vary with the environment. We also discuss conditions under which the fifty-percent majority rule is optimal or close to the optimal decision rule.

Discipline

Economics

Research Areas

Applied Microeconomics

Publication

Journal of Economic Behavior and Organization

Volume

23

Issue

2

First Page

195

Last Page

214

ISSN

0167-2681

Identifier

10.1016/0167-2681(94)90067-1

Publisher

Elsevier

Additional URL

https://doi.org/10.1016/0167-2681(94)90067-1

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