I think it is the most illuminating set of experiments I have seen on this phenomenon. Most important in the current environment, it's pretty clear I think that one can't look to the wisdom of crowds as a mechanism to enforce any kind of "wisdom" on the part of the financial markets. (This doesn't mean they're always wrong either, of course.)
Friday, October 5, 2012
wisdom of crowds
My next Bloomberg column comes out this weekend is now out here. I wanted to give readers some further detail on the experiments I wrote about in the column, experiments designed to test how social influence affects the Wisdom of Crowds phenomenon. I actually wrote about the experiments in this post last year, and that post gives quite a lot of detail.
I think it is the most illuminating set of experiments I have seen on this phenomenon. Most important in the current environment, it's pretty clear I think that one can't look to the wisdom of crowds as a mechanism to enforce any kind of "wisdom" on the part of the financial markets. (This doesn't mean they're always wrong either, of course.)
I think it is the most illuminating set of experiments I have seen on this phenomenon. Most important in the current environment, it's pretty clear I think that one can't look to the wisdom of crowds as a mechanism to enforce any kind of "wisdom" on the part of the financial markets. (This doesn't mean they're always wrong either, of course.)
