Thomas Schelling, a sociologist, conducted an experiment with a group of law students in 1958. He began by asking, “Suppose you wanted to meet someone in New York City but didn’t know where you were and couldn’t talk to them in advance. Where would you go?” Although there is no logical answer due to the vastness of New York City and the numerous meeting places, the responses were intriguing: Over 80% of students chose the Grand Central Station information booth. For his next experiment, he asked 42 students to choose heads or tails, assuming that the other students would agree and choose the same side. In this case, 36 students chose heads. These options are referred to as Schelling points. Smart investors understand that most people have default group preferences. When given the option of a drink, an Iranian would choose doogh with broth and a soda with fast food. Thus, a successful investor recognizes and adapts to personal preferences. People who want to attract investment successfully should pay attention to and use collective intelligence to increase product sales and investment.
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