ECONOMICS

Detailed explanation-1: -Groupthink is a psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Detailed explanation-2: -Groupthink is a phenomenon that occurs when a group of individuals reaches a consensus without critical reasoning or evaluation of the consequences or alternatives. Groupthink is based on a common desire not to upset the balance of a group of people.

Detailed explanation-3: -Groupthink refers to the tendency for members of a highly cohesive group to seek consensus so strongly that they fail to do a realistic appraisal of other alternatives, which may be more correct.

Detailed explanation-4: -Group polarization is defined as a phenomenon when “members of a deliberating group move toward a more extreme point in whatever direction is indicted by the members’ predeliberation tendency.” Group polarization leads to changing attitudes among individuals within the group.

Detailed explanation-5: -Two well-known examples of Groupthink in action are the Challenger Space Shuttle disaster and the Bay of Pigs invasion. Engineers of the space shuttle knew about some faulty parts months before takeoff, but they did not want negative press so they pushed ahead with the launch anyway.