Comments on: Review: The Wisdom of Crowds http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/ Financial talk for the rest of us Sat, 16 Feb 2013 01:14:45 +0000 hourly 1 http://wordpress.org/?v=3.5.1 By: jd http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-141018 jd Tue, 25 Dec 2007 18:18:06 +0000 http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-141018 For a given topic, I like to know the “expert opinion”, the collective community view, and I like to have my own opinion. In our info-overloaded world, I’m a fan of trusted authorities and authority sites to cut through the noise. At the same time, I think information markets have their place, because they can tell you what the perception or crowd thinking is. It’s input. I do think we need more prescriptive guidance on using the types of info markets more effectively (idea, priority, and prediction markets).

]]> By: Andy http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-140019 Andy Mon, 24 Dec 2007 16:58:15 +0000 http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-140019 I like the idea of information cascade, where (bad) information gains credibility as its handed from one person to the next. Example, in “Who Wants to be a Millionaire,” the crowd is usually right when its asked to help select the answer. In that case, individuals in the crowd decide simultaneously. However, imagine if individuals in the crowd decided sequentially and publicly. The first person may choose the incorrect answer. The second person, not knowing the answer, might go along with the first person. The third person, knowing the right answer, but being unsure, might go along with the first and second answer. By now, it would take a brave person who is sure of the answer to correct this false information cascade. So, it matters a great deal HOW groups make decisions.

]]> By: George http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-139996 George Mon, 24 Dec 2007 16:16:12 +0000 http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-139996 I guess I’m not convinced of the wisdom of crowds. Take “Challenger vs. the stock market”: sounds like investors were wrong with 3 of the 4 companies and anyone wise enough to figure out the real culprit would have profited nicely rather than those that dumped all 4 companies. On average, the investor crowd was VERY wrong.

]]> By: Michael http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-139946 Michael Mon, 24 Dec 2007 15:01:15 +0000 http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-139946 In London, the crowds are stealing license plates in record numbers to avoid the new tolls.

]]> By: ok http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-139907 ok Mon, 24 Dec 2007 14:08:23 +0000 http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-139907 One last thing… I’m sure America’s corporate media had nothing to do with manipulating the past few election cycles. They certainly don’t use their power to influence the people at all, that’s just some ridiculous myth invented by America hating Americans! FOX News is totally fair and balanced, why would they lie about that?

“The Wisdom of (ignorant, lazy and easily manipulated) Crowds” can set the world on fire.

]]> By: ok http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-139903 ok Mon, 24 Dec 2007 14:00:56 +0000 http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-139903 Um… being “weak” in the face of some silly attack ad vs. the unbelievable evil Bush and co. had already wrought upon the world? Wow. Whatever makes you sleep better at night. Me say ok. Me vote overbearing authoritarian type next time. Me love cocaine snorting, alcoholic, animal abusing fascists. Me go with crowd, huhuhuhuhuh.

]]> By: Trent http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-139838 Trent Mon, 24 Dec 2007 11:36:12 +0000 http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-139838 John Kerry happened to the wisdom of the crowd. His inability to adequately handle even the weak Swift Boat attack ads was a pretty clear clue as to his leadership skills.

]]> By: Macinac http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-139731 Macinac Mon, 24 Dec 2007 06:19:38 +0000 http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-139731 I’m struggling to understand why we re-elected George Bush. It was obvious by that time that the Iraq war was a bad move. Cheney and other members of the administration had shown their dark sides. We already knew that civil rights such as habeas corpus were being violated. If anything we had solid grounds for impeachment. What happened to the wisdom of the crowd?

]]> By: Todd http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-139462 Todd Sun, 23 Dec 2007 20:27:39 +0000 http://www.thesimpledollar.com/2007/12/23/review-the-wisdom-of-crowds/#comment-139462 Great book review. “Groupthink” is what drives consumerism. Get the mob to think that this is the latest and best thing and everyone else will follw suite. When I worked at Verizon there was a group of people who were pulling together their “knowledge” about how to invest in their 401k plans. They asked me if I wanted to join in and we all invest in the same funds. I politely said, “No thank you,” then I went and researched all my fund options for the plan and made the best educated decisions I could. Not to brag, but my 401k plan provided me with a higher yeild than their “group idea funds.” Research and genuine education is far better than popular opinion; Warren Buffett would be the first to attest to this. Many times he went against the popular view of the day based on his personal research and it made him millions. Thanks for the post, very informative.

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