Decision-Making in Committees: A Human Fallibility Approach
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...
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| Format: | text |
| Language: | English |
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Institutional Knowledge at Singapore Management University
1994
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| Online Access: | https://ink.library.smu.edu.sg/soe_research/189 |
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| Institution: | Singapore Management University |
| Language: | English |
| Summary: | 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. |
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