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:
“The two elements the traveler first captures in the big city are extrahuman architecture and furious rhythm. Geometry and anguish. At first glance, the rhythm may be confused with gaiety, but when you look more closely at the mechanism of social life and the painful slavery of both men and machines, you see that it is nothing but a kind of typical, empty anguish that makes even crime and gangs forgivable means of escape.”
—Federico García Lorca (1898–1936)
“But a man must keep an eye on his servants, if he would not have them rule him. Man is a shrewd inventor, and is ever taking the hint of a new machine from his own structure, adapting some secret of his own anatomy in iron, wood, and leather, to some required function in the work of the world. But it is found that the machine unmans the user. What he gains in making cloth, he loses in general power.”
—Ralph Waldo Emerson (1803–1882)
“Although Samuel had a depraved imagination—perhaps even because of this—love, for him, was less a matter of the senses than of the intellect. It was, above all, admiration and appetite for beauty; he considered reproduction a flaw of love, and pregnancy a form of insanity. He wrote on one occasion: “Angels are hermaphrodite and sterile.””
—Charles Baudelaire (1821–1867)
“That’s the wise thrush; he sings each song twice over,
Lest you should think he never could recapture
The first fine careless rapture!”
—Robert Browning (1812–1889)
“The wide wonder of Broadway is disconsolate in the daytime; but gaudily glorious at night, with a milling crowd filling sidewalk and roadway, silent, going up, going down, between upstanding banks of brilliant lights, each building braided and embossed with glowing, many-coloured bulbs of man-rayed luminance. A glowing valley of the shadow of life. The strolling crowd went slowly by through the kinematically divine thoroughfare of New York.”
—Sean O’Casey (1884–1964)