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:
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—Anonymous, U.S. women’s magazine contributor. The Revolution (August 19, 1869)
“The novelist is required to open his eyes on the world around him and look. If what he sees is not highly edifying, he is still required to look. Then he is required to reproduce, with words, what he sees.”
—Flannery O’Connor (1925–1964)
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—John Kenneth Galbraith (b. 1908)
“Even voting for the right is doing nothing for it. It is only expressing feebly your desire that it should prevail. A wise man will not leave the right to the mercy of chance, nor wish it to prevail through the power of the majority.”
—Henry David Thoreau (1817–1862)
“If it has to choose who is to be crucified, the crowd will always save Barabbas.”
—Jean Cocteau (1889–1963)