> the fallacy of composition brings it about from time to time that individual actors all act rationally but in combination produce an irrational result, such as standing to get a better view as spectators of sport, or, more dramatically, running for the exit in a theater fire. > *Kindleberger*, Manias, Panics, and Crashes p.217 Also known as "hasty generalization", It occurs when someone makes an argument against something by assuming that a principle or characteristic that applies to individual parts of a whole must also apply to the whole itself. This is a logical fallacy because it doesn't necessarily hold true that what is true for the parts is also true for the whole. It's important to be cautious about making such assumptions when reasoning or arguing. **Case Studies:** - [[CHG Issue 149 Private Equity and The Fallacy of Composition]] - [[CHG Issue 102 Fallacy of Composition]] Explore Further: Tags: #heuristic Your support for Cedars Hill Group is greatly appreciated <form action="https://www.paypal.com/donate" method="post" target="_top"> <input type="hidden" name="hosted_button_id" value="74PGN8ZXHQVHS" /> <input type="image" src="https://www.paypalobjects.com/en_US/i/btn/btn_donate_LG.gif" border="0" name="submit" title="PayPal - The safer, easier way to pay online!" alt="Donate with PayPal button" /> <img alt="" border="0" src="https://www.paypal.com/en_US/i/scr/pixel.gif" width="1" height="1" /> </form>