Four Elements Required To Form A Wise Crowd
Not all crowds (groups) are wise. Consider, for example, mobs or crazed investors in a stock market bubble. According to Surowiecki, these key criteria separate wise crowds from irrational ones:
| Criteria | Description |
|---|---|
| Diversity of opinion | Each person should have private information even if it's just an eccentric interpretation of the known facts. |
| Independence | People's opinions aren't determined by the opinions of those around them. |
| Decentralization | People are able to specialize and draw on local knowledge. |
| Aggregation | Some mechanism exists for turning private judgments into a collective decision. |
Based on Surowiecki’s book, Oinas-Kukkonen captures the wisdom of crowds approach with the following eight conjectures:
- It is possible to describe how people in a group think as a whole.
- In some cases, groups are remarkably intelligent and are often smarter than the smartest people in them.
- The three conditions for a group to be intelligent are diversity, independence, and decentralization.
- The best decisions are a product of disagreement and contest.
- Too much communication can make the group as a whole less intelligent.
- Information aggregation functionality is needed.
- The right information needs to be delivered to the right people in the right place, at the right time, and in the right way.
- There is no need to chase the expert.
Read more about this topic: The Wisdom Of Crowds
Famous quotes containing the words elements, required, form, wise and/or crowd:
“A party of order or stability, and a party of progress or reform, are both necessary elements of a healthy state of political life.”
—John Stuart Mill (1806–1873)
“In properly organized groups no faith is required; what is required is simply a little trust and even that only for a little while, for the sooner a man begins to verify all he hears the better it is for him.”
—George Gurdjieff (c. 1877–1949)
“Well then! Wagner was a revolutionary—he fled the Germans.... As an artist one has no home in Europe outside Paris: the délicatesse in all five artistic senses that is presupposed by Wagner’s art, the fingers for nuances, the psychological morbidity are found only in Paris. Nowhere else is this passion in questions of form to be found, this seriousness in mise en scène—which is Parisian seriousness par excellence.”
—Friedrich Nietzsche (1844–1900)
“So wise so young, they say, do never live long.”
—William Shakespeare (1564–1616)
““Crucify him!””
—Bible: New Testament, Mark 15:13.
The crowd at Jesus’ trial.