How Does Charlie Munger Explain the "Authority Bias"? Please Provide Examples.

In his famous lecture on "The Psychology of Human Misjudgment," Charlie Munger refers to "authority bias" as the Authority-Misinfluence Tendency. He considers this one of the most powerful and deeply ingrained psychological tendencies in the human mind. Its core lies in the fact that human society has an innate tendency to follow leaders, causing people to over-trust and obey the opinions of authority figures, even when those opinions are wrong.

Munger's explanation can be summarized into the following aspects:

Evolutionary and Social Roots: Munger believes this tendency stems from human evolution. In early societies, hierarchical power structures and obedience to leaders were crucial for resource allocation, collective hunting, and defense against external threats. A tribe with a clear leader capable of efficiently executing commands had a far greater chance of survival than a disorganized group. Therefore, "obeying authority" became a survival shortcut ingrained in our genes and culture.
Mental Shortcuts and Cognitive Laziness: In the complex modern world, it's impossible to be an expert in all fields. Therefore, relying on the judgments of authorities (such as doctors, lawyers, scientists) is an efficient cognitive shortcut that saves significant time and effort. However, when this shortcut becomes an automatic, unthinking reaction, danger arises. We stop thinking independently and completely outsource the responsibility of judgment to the authority.
Symbols of Authority: Munger specifically points out that this bias is triggered not only by the authority figures themselves but also by their symbols, such as titles (Dr., CEO, General), uniforms (lab coats, police uniforms), expensive suits, and luxurious offices. These external symbols reinforce the authority's status, making it easier for us to abandon critical thinking.
Catalyst for the "Lollapalooza Effect": Munger emphasizes that the authority bias rarely acts alone. It often combines with other psychological biases to create a powerful "Lollapalooza Effect" (extreme consequences resulting from the confluence of multiple biases). For example, when an authority figure's view is reinforced by Social Proof ("everyone thinks so"), its persuasiveness increases exponentially, leading to collective irrational behavior.

Classic Cases Cited by Munger

Munger liked to use extreme, memorable examples to illustrate the immense power of the authority bias.

Case 1: The Milgram Experiment

This is the psychology experiment Munger most frequently cited to demonstrate the terrifying power of authority.

Experiment Process: In the experiment, an ordinary participant acting as the "teacher" was ordered by an experimenter in a lab coat, representing "authority," to administer electric shocks to an actor playing the "learner" in the next room. Whenever the "learner" answered incorrectly, the "teacher" was instructed to increase the shock voltage. Despite the "learner" screaming in pain, begging for mercy, and eventually falling silent, most participants obeyed the authority figure's calm commands ("Please continue," "The experiment requires you to continue") and administered what they believed to be lethal levels of shock.
Munger's Interpretation: This experiment starkly revealed how an ordinary, seemingly moral person could act against their own conscience and reason under the command of an authority. The presence of authority allowed participants to transfer the moral responsibility for their actions to the experimenter, turning themselves into mere instruments of command.

Case 2: "Captainitis" and Aviation Safety

The aviation industry is a classic domain where authority bias has led to catastrophic consequences.

Problem Description: In the early days of aviation, the captain's authority was absolute. Investigations into many air crashes found that co-pilots or flight engineers, despite recognizing the captain was making a fatal error, failed to voice strong objections due to awe or fear of the captain's authority, ultimately leading to disaster. This phenomenon became known as "Captainitis."
Example Cited by Munger: Munger referenced the FedEx Flight 705 hijacking attempt. A disgruntled flight engineer attempted to hijack the plane and crash it, severely injuring the captain, first officer, and another flight engineer with a hammer. During the struggle, the surviving crew members discovered that even in this life-or-death situation, the injured engineer, conditioned by long-standing habits of obedience, instinctively tried to assist the hijacker acting as the "captain" (despite knowing the hijacker was wrong).
Solution: To combat this bias, modern aviation introduced the Crew Resource Management (CRM) system. This system mandates and encourages all crew members, regardless of rank, to take responsibility for flight safety and clearly, unambiguously point out any potential errors made by the captain. This embodies the "system to check authority" advocated by Munger.

Case 3: Investment and Business Decisions

In Munger's own domain of investment and business, authority bias is equally prevalent.

Blindly Following "Star Analysts": During bull markets, certain "star analysts" or "stock gurus" are elevated to near-deity status by the media and public. Their recommendations or offhand comments are regarded as gospel by countless investors who blindly follow them without analysis. Investors abdicate the responsibility of independently researching company fundamentals simply because "so-and-so authority bought it." When the bubble bursts, these investors often suffer heavy losses.
Deferring to Charismatic CEOs: A CEO with strong personal charisma and a history of brilliant achievements can easily establish absolute authority within the boardroom and the company. In such an atmosphere, no one dares to question their aggressive expansion strategies or questionable financial practices. The collapse of Enron is a prime example, where leadership used their authoritative positions to conceal massive financial fraud, ultimately leading to bankruptcy.

How to Prevent and Counteract Authority Bias?

Based on Munger's wisdom, we can adopt the following measures:

Use Checklists: Munger was a staunch advocate of checklists. When making important decisions, especially those influenced by authority figures, use a checklist to force independent and critical thinking. Ask yourself: "Is this authority truly an expert in this specific field?" "What is their reasoning and evidence?" "Are there any conflicts of interest?"
Challenge Authority, Encourage Dissent: Consciously foster a culture of "challenging authority," whether within an organization or in personal thinking. Like the CRM system in aviation, establish checks and balances so that dissenting opinions can be safely voiced.
Return to First Principles: Don't accept a conclusion simply because an authority said it. Return to the fundamental nature of the problem and examine the entire logical chain using basic, self-evident principles.

By deeply understanding how the Authority-Misinfluence Tendency operates and its power, and by consciously building mental and institutional models to counteract it, we can reduce major errors in decision-making and achieve more rational judgments.