by James Surowiecki

The wisdom of crowds

To find out ….Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations

Aim…

Author…James Michael Surowiecki

•PhD from Yale University • American Journalist•Works as a staff writer at The New Yorker•Published his book in 2004

The collection of information in groups, resulting in decisions that are often better than decisions made by any single member of the group. 

Theme:

Diversity of Opinion Independence Decentralization Aggregation

Concept that determines the wise crowd..

Each individual has his/her opinion based on his/her knowledge about that condition

Expands the range of possible solutions

Diversity of Opinion…

Each individuals opinion is independent of others

Herd behavior

Independence…

Individuals are able to specialize and draw conclusions based on their knowledge it is like a guess work

Key factor -Aggregate behavior

http://www.youtube.com/watch?v=Gqli97iKiaM

Decentralization…

Compilation of opinions and working on the one which is given by most of the people from a group - Majority wins

Aggregation…

Co-ordination: Problems that don’t necessarily have an objectively “correct” answer, but which are framed in terms of coordinating actions with everyone else’s actions

Difficult to solve

Problems..

Co-operation: Similar to co-ordination Participants need to look at broader picture as a part of an organization or society

Problems..

Brief explanation of wisdom of crowd –

http://www.youtube.com/watch?v=3Sgd1Ibnz2s&feature=related

Author`s Interview –http://

www.youtube.com/watch?v=U0LhDQD7-ms&feature=related

Links..