What is a group
A collection of people who want the same thing and could benefit from working together
Free-Rider problem
From Olson, when outcomes must be shared, all the value derived is shared with everyone; each individual person does not have the incentive to contribute, hoping others will, and they can reap the reward with no work
Collectively Bad Outcome
The pursuit of individual self-interest leads to an outcome where the group as a whole is worse off than if they had cooperated
Group Failure
The group may either fail to form initially or, if formed, fail to achieve its collective goals due to a lack of sufficient resources or mobilization
Small Privileged Group
= Group Succeeds and low chance of free riding
Large/Latent Groups
= Group failure and high chance of free riding
Overcoming the Free-Rider Problem
Selective Incentives: incentives operate selectively toward individuals who contribute, ensuring that those who do not contribute are treated differently from those who do
Material Incentives
A type of selective incentive; Private goods tied to membership (e.g., insurance, discounts, job protection). Accuracy-motivated
Solidary Incentives
A type of selective incentive; Social benefits derived from participation (e.g., status, friendship, networking, or social pressure/recognition/sanctions) directional reasoning
Purposive Incentives
A type of selective incentive; Ideological or psychological satisfaction (e.g., the “warm glow” from feeling good about participating or “doing the right thing”), directional reasoning
Olson’s Prediction
Without selective incentives, large groups will systematically under-provide collective
goods relative to smaller, more concentrated groups.
Benefits to Groups
– Collective memory - more information available
– Error correction - members catch each other’s mistakes
– Novel solutions - interaction generates new ideas
– Distributed expertise - different members bring different knowledge
When Groups make things worse
-Social Loafing
-Coordination Problems
-Poor information sharing
Social Loafing
the phenomenon where individuals exert less effort when working in a group compared to when working alone. This happens because people may feel less accountable or believe others will pick up the slack, leading to reduced individual contribution
Coordination Problems
occur when group members have difficulty organizing their actions effectively. This can be due to communication barriers, differing priorities, or challenges in aligning efforts, which can reduce the group’s overall performance
Poor Information Sharing
describes situations where group members fail to exchange relevant or unique information. Often, groups tend to discuss information everyone already knows, leading to shared information bias and echo chambers, which can impair decision-making quality.
Groupthink (Janis)
a mode of thinking that occurs when the desire for harmony in a
decision-making group overrides realistic evaluation of alternatives
When does Group think happen?
High Group Cohesiveness
Insulation from Outside
Directive Leadership
Lack of Procedures
High Stress
High Group Cohesiveness
Members really like each other and want to stay in the group
Insulation from Outside
Group doesn’t seek or receive external opinions
Directive Leadership
Leader has strong preferences and dominates discussion
Lack of Procedures
No systematic way to evaluate alternatives
High Stress
Crisis situation with time pressure and high stakes. Increases conformity pressures and reduces independent evaluation of alternatives.
Preventing Groupthink
Janis recommends: