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MichaelBishop comments on Rational Groups Kick Ass - Less Wrong
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It sounds like you're arguing that there are increasing returns to rationality in groups.
I am not sure. But I think that it would be helpful to think about what experiment would demonstrate the argument you're making here. e.g. Give a rationality diagnostic exam to a bunch of people, then put them in groups of various sizes and measure how well they perform various tasks.
Relatively rational people can form deeply irrational groups, and vice versa.
I would probably take a group with rational institutions but irrational members over a group with irrational institutions but rational members.
Of course, rational people will be better on average at building rational groups, so I would still predict a positive correlation in the experiment.