Common-information bias affects decision making by causing what?

Common-information bias impacts decision-making by resulting in an overemphasis on information that is shared among group members, rather than considering unique insights or data held by individuals. This tendency can lead to a situation where discussions focus primarily on what most group members already know, thus reinforcing existing viewpoints and reducing the exploration of diverse perspectives.

When decision-makers prioritize the majority-held information, they may miss out on critical insights that are only known to one or a few individuals. This bias leads to a lack of comprehensive consideration of all available information, which in turn may affect the quality of the decisions made. Instead of fostering a balanced discussion that incorporates various viewpoints, teams may inadvertently ignore valuable and potentially divergent information from minority perspectives, limiting their overall effectiveness.