Bubbles Quote by James Surowiecki
“Bubbles and crashes are textbook examples of collective decision making gone wrong. In a bubble, all of the conditions that make groups intelligent - independence, diversity, private judgement-disappear.”
About This Quote
Source Book: The Wisdom of Crowds, 2004
Collective decisions fail when group members lose independence, diversity, and private judgment, leading to bubbles and crashes.
In simple terms: Groupthink destroys smart decision‑making.
Key Takeaway
Guard against homogeneity in groups.
Themes
decision making
group dynamics
economics
risk
bubbles
Mood
cautious
analytical
Type
theoretical
practical
When to use this quote
- investment
- policy design
- team brainstorming
- risk assessment
Key Concepts
collective intelligence
market dynamics
Questions to Reflect On
- What safeguards can preserve independence?
- How can diversity be measured?
A Different Perspective
Not all groups suffer equally; some maintain healthy dissent.
