The Democratic Peace and the Wisdom of Crowds

This article proposes a new theory for the democratic peace that highlights a previously unexplored advantage enjoyed by democracies in crises. We argue that because democracies typically include a larger number of decision-makers in the foreign policy process, they will produce fewer decision-making errors in situations of crisis bargaining. Thus, bargaining among larger groups of diverse decision-makers will fail less often. In order to test our hypothesis, we use data from experiments in which subjects engage in ultimatum bargaining games. We compare the performance of individuals, small groups and foreign policy experts against the performance of larger groups of decision-makers. We find strong support for the idea that collective decision-making among larger groups of decision-makers decreases the likelihood of bargaining failure.