Are two heads better than one? Monetary policy by committee

Alan S. Blinder, John Morgan

Research output: Contribution to journalReview articlepeer-review

172 Scopus citations


Two experiments were conducted to test the common hypothesis that groups make decisions more slowly than individuals. One of these experiments imitates real-life monetary policy decisions. In both cases, the hypothesis is found wanting: groups are not slower than individuals. In both experiments, we also find that group decisions are on average better than individual decisions. This holds regardless of whether the groups make decisions by unanimity or majority rule. Simple mechanical theories of group decisionmaking - that the group follows its average player, median player, or best player - do not explain the results. Group interactions seem to matter.

Original languageEnglish (US)
Pages (from-to)789-811
Number of pages23
JournalJournal of Money, Credit and Banking
Issue number5
StatePublished - Oct 2005

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics


  • Group decision making
  • Monetary policy


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