Comment Fire House Effect (Score 2) 458
The topic is right on. I see it all the time in trading...
The Firehouse Effect is a notion attributed to a veteran market trader Marty O’Connell “that firemen with much downtime who talk to each other for too long come to agree on many things that an outside, impartial observer would find ludicrous”.
Also Silicon Valley violates the principles of good decision making as outlined in Wisdom of the Crowds by James Surowiecki.
Good decision making by groups:
Diversity of opinion - Each person should have private information even if it's just an eccentric interpretation of the known facts.
Independence - People's opinions aren't determined by the opinions of those around them.
Decentralization - People can specialize and draw on local knowledge.
Aggregation - Some mechanism exists for turning private judgments into a collective decision.
SV has become a hotbed of McCarthyism in reverse.