Final answer:
The advantage of group decision making is that it allows for the use of a wider range of resources, leading to more informed and considered outcomes. Collaboration leverages multiple viewpoints and expertise to create innovative solutions, reducing conformity costs while increasing transaction costs.
Step-by-step explanation:
An advantage of group decision making is that it may permit the use of a wider range of resources. This is because when a group collaborates, each member can bring unique skills, knowledge, and perspectives to the table, increasing the pool of resources available for problem-solving. Group decision making encourages diverse viewpoints, which can lead to more innovative and effective solutions. For example, during a group decision-making process, members can tap into different areas of expertise, share labor to gather more information, and challenge each other's assumptions, leading to a well-rounded and thoroughly considered decision.
Transaction costs in group decision making refer to the time, effort, and other resources needed to coordinate among group members and reach a decision. These costs are a trade-off for the benefits gained from group collaboration. On the other hand, conformity costs—the sacrifice of an individual's ideal outcome for the sake of group consensus—are likely reduced, as the collective decision tends to represent a blend of the group members' preferences, often resulting in a compromise.
The concept of collective dilemmas is also linked to group decision making, addressing problems that arise from multiple individuals working together to decide on a common policy or action. Challenges such as the coordination of numerous opinions and the resolution of conflicts are inherent to the process, but the benefits of pooling resources and gaining a multimodal perspective can be significant.