Types of Crowd Wisdom
Surowiecki breaks down the advantages he sees in disorganized decisions into three main types, which he classifies as
- Cognition
- Thinking and information Processing
- Market judgment, which he argues can be much faster, more reliable, and less subject to political forces than the deliberations of experts or expert committees.
- Coordination
- Coordination of behavior includes optimizing the utilization of a popular bar and not colliding in moving traffic flows. The book is replete with examples from experimental economics, but this section relies more on naturally occurring experiments such as pedestrians optimizing the pavement flow or the extent of crowding in popular restaurants. He examines how common understanding within a culture allows remarkably accurate judgments about specific reactions of other members of the culture.
- Cooperation
- How groups of people can form networks of trust without a central system controlling their behavior or directly enforcing their compliance. This section is especially pro free market.
Read more about this topic: The Wisdom Of Crowds
Famous quotes containing the words types of, types, crowd and/or wisdom:
“The wider the range of possibilities we offer children, the more intense will be their motivations and the richer their experiences. We must widen the range of topics and goals, the types of situations we offer and their degree of structure, the kinds and combinations of resources and materials, and the possible interactions with things, peers, and adults.”
—Loris Malaguzzi (1920–1994)
“As for types like my own, obscurely motivated by the conviction that our existence was worthless if we didn’t make a turning point of it, we were assigned to the humanities, to poetry, philosophy, painting—the nursery games of humankind, which had to be left behind when the age of science began. The humanities would be called upon to choose a wallpaper for the crypt, as the end drew near.”
—Saul Bellow (b. 1915)
“The whole LSD, STP, marijuana, heroin, hashish, prescription cough medicine crowd suffers from the “Watchtower” itch: you gotta be with us, man, or you’re out, you’re dead. This pitch is a continual and seeming MUST with those who use the stuff. It’s no wonder they keep getting busted.”
—Charles Bukowski (b. 1920)
“Upon looking back from the end of the last chapter and surveying the texture of what has been wrote, it is necessary, that upon this page and the five following, a good quantity of heterogeneous matter be inserted, to keep up that just balance betwixt wisdom and folly, without which a book would not hold together a single year.”
—Laurence Sterne (1713–1768)