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The Wisdom of Crowds
 
 

The Wisdom of Crowds (Paperback)

by James Surowiecki (Author)
4.0 out of 5 stars  See all reviews (21 customer reviews)
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Product Description

From Publishers Weekly

While our culture generally trusts experts and distrusts the wisdom of the masses, New Yorker business columnist Surowiecki argues that "under the right circumstances, groups are remarkably intelligent, and are often smarter than the smartest people in them." To support this almost counterintuitive proposition, Surowiecki explores problems involving cognition (we're all trying to identify a correct answer), coordination (we need to synchronize our individual activities with others) and cooperation (we have to act together despite our self-interest). His rubric, then, covers a range of problems, including driving in traffic, competing on TV game shows, maximizing stock market performance, voting for political candidates, navigating busy sidewalks, tracking SARS and designing Internet search engines like Google. If four basic conditions are met, a crowd's "collective intelligence" will produce better outcomes than a small group of experts, Surowiecki says, even if members of the crowd don't know all the facts or choose, individually, to act irrationally. "Wise crowds" need (1) diversity of opinion; (2) independence of members from one another; (3) decentralization; and (4) a good method for aggregating opinions. The diversity brings in different information; independence keeps people from being swayed by a single opinion leader; people's errors balance each other out; and including all opinions guarantees that the results are "smarter" than if a single expert had been in charge. Surowiecki's style is pleasantly informal, a tactical disguise for what might otherwise be rather dense material. He offers a great introduction to applied behavioral economics and game theory.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.


From AudioFile

What does guessing the weight of an ox at a country fair have to do with the 9/11 attacks? How does a flock of birds relate to a traffic jam? Why doesn't collective wisdom believe in collective wisdom? Addressing complex and sociological theories, James Surowiecki explores these and other questions as he explains how groups of people, in specific kinds of circumstances, can reach intelligent, accurate decisions that can then go horribly wrong. The material is complex, and narrator Erik Singer is wise to stay out of the way, delivering a clear, straightforward reading with a tone of scientific professionalism. The strength and warmth in his voice do well to engage listeners with the ideas--as do his frequent dashes of humor. While the subject matter is weighty, Singer makes listening to it effortless. R.G.M. © AudioFile 2004, Portland, Maine-- Copyright © AudioFile, Portland, Maine --This text refers to an out of print or unavailable edition of this title.

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Customer Reviews

21 Reviews
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6 of 7 people found the following review helpful:
2.0 out of 5 stars Interesting but a bit disappointing, Jun 28 2004
By A Customer
I wanted to read this book because I have a personal interest in Prediction Markets and have read a couple of Surowiecki's columns in the New Yorker and Wired magazines on this subject. My expectation was that he would expand on his columns and get into details on how Prediction Markets can be used in a corporate or public decision making process. Unfortunately, I'm going to have to agree with the more negative reviews already posted. While the first 50 pages do a good job of explaining these markets and setting the table for a detailed examination, that discussion never happens. Instead, the majority of the book is a collection of studies and anecdotes about the behavior of crowds - most of which I have some recollection of from Psychology classes taken long ago. The second half of the book focuses on what he calls Case Studies, but what I would call simply stories. There's a story about corruption of Italian soccer judges, Richard Grasso's compensation, a review of crowd theory in the movies, the retail fashion industry, the Columbia disaster, etc. Fairly interesting, but hardly instructive. My amateurish explanation for all this is that while Surowiecki may be a talented columnist, but when challenged when writing a full length book, he has neither the practical experience nor educational background to give any great insight on how to leverage the wisdom of crowds to tackle the issues of the day.
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5 of 6 people found the following review helpful:
1.0 out of 5 stars Disappointingly, an unconvincing intellectual muddle, Jun 12 2004
Upon hearing about a book on "the wisdom of crowds", I expected it to answer three qeustions: Are crowds wise?, When are they wise?, and Why are they wise? Sadly, this book answers none of them.

Are crowds wise? Surowiecki fills his pages with unconvincing anecdotes. He has only a handful of real studies and he buries them randomly throughout the book. Worse, Surowiecki sometimes describes a study that would be easy to conduct, but instead of doing it he simply tells us what he expects the results would be. And despite the book's constant championing of dissent, Surowiecki offers no evidence that cuts against his argument. Instead, every failure of a crowd simply helps prove his thesis, since he claims it failed because it violated one of his vaugely-stated rules.

When are crowds wise? Surowiecki offers only untested speculation. He claims they need "diversity, independence, and a particular kind of decentralization" (oddly, by decentralization Surowiecki appears to mean aggregation). Surowiecki never defines any of these particularly clearly but instead gives lots of examples. This makes them useless as predictors of a crowd's intelligence which is probably why Surowiecki makes no attempt to test them.

Why are crowds wise? Surowiecki doesn't even bother to answer this one, even though it's the first half of the books subtitle. He considers the question briefly on page 10, only to spout some empty sayings (crowds are "information minus error") and wonder in amazement ("who knew ... we can collectively make so much sense") before finally concluding "You could say it's as if we've been programmed to be collectively smart."

Perhaps noticing these weaknesses, Surowiecki gets all this out of the way in the first 40% of the book. The remainder is dedicated to larger collections of anecdotes Surowiecki likens to case studies. But even they disappoint. While Surowiecki has lots of stories, few are particularly enlightening or even memorable. Surowiecki does little analysis of the stories and does not draw out larger lessons. He assumes he is right and only stops to look down upon those who disagree.

I'm especially disappointed since I expected the book to be good. I love Surowiecki's weekly column in the _New Yorker_ and I suspect he is right about a lot. But instead of making a convincing argument, Surowiecki just stirs together anecdotes from his columns. The result, not suprisingly, is an intellectual muddle.

One thing the book does teach (although not clearly) is the wisdom of _dissent_. You can ensure dissent by collecting a large group and keeping the members from talking to each other (since people are usually smart but afraid of going against the grain), by ensuring some members of the group vocally disagree (since they will force the others to better justify their positions), or by forcing them to try to justify all sides (since that will keep them from prejudging the question).

All of which makes it ironic that Surowiecki's book fails because of a lack of dissent. Nothing goes against the grain, he doesn't justify his positions, and he has clearly prejudged the question. It would seem he needs a crowd to make him wise.

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5.0 out of 5 stars Relevant and surprising, Jul 10 2004
By Matthew Gleick (Phoenix, AZ) - See all my reviews
Although the subtitle to THE WISDOM OF CROWDS is an awkward mouthful, it is at least accurate: the book does an exceptional job of illuminating a remarkably wide range of material from politics, everyday life, and the business world. Surowiecki's not offering a grand unified theory of everything, but in the course of investigating how and when groups and crowds are and are not intelligent, he takes you on an exhilarating ride. You can't go more than a couple of pages without coming across some interesting factual tidbit or clever anecdote. Just a short list of stuff Surowiecki writes about includes: crowds on city sidewalks, Navy men trying to find a lost submarine, the Nielsen ratings, Google, scientists trying to find the SARS virus, the stock market, game-show audiences, fashion stores, and the C.I.A. Thankfully, though, he understands that just stringing together stories isn't enough. Instead, he fits his examples into a strong argument that holds the book together. You can get a lot out of this book just by dipping into individual chapters, but reading it from beginning to end is a powerful experience.

One of the things about the book that hasn't been much remarked on is the light it sheds on the flaws in the way the U.S. intelligence community -- and, I would argue, the Bush administration -- approaches the problem of forecasting the future and making good decisions. The book's main subject is the wisdom of crowds, but Surowiecki spends a lot of time on how groups go wrong, and his discussion of how groups make bad decisions seems to me completely relevant to our current problems. When Surowiecki delves into groupthink, into the pressure that's exerted on lower-level employees to conform, and the perils of too little diversity of opinion, he's making a broader point about what good decisions require. But in the process, he clarified for me just why the current administration did such a bad job of figuring out whether Iraq had weapons of mass destruction and of planning for the postwar period. I was surprised, but it turns out this book has a lot to say about the state we're in right now.

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Most recent customer reviews

5.0 out of 5 stars Engaging
Even after having read it, I'm still not sure what category I'd put THE WISDOM OF CROWDS in. It offers important insights into business, and helped me understand the way markets... Read more
Published on Jul 3 2004

5.0 out of 5 stars Refreshingly optimistic
It seems naive to mention it, but one of the things I liked best about Surowiecki's take on the intelligence of groups is how optimistic it is. Read more
Published on Jul 3 2004 by stevec91

2.0 out of 5 stars This is not the new new Tipping Point
Like so many, I was excited for this book, since I buy the basic concept (at least from the Google angle) and I enjoy Surowiecki's NEW YORKER column. Read more
Published on Jul 1 2004 by Jennifer Godwin

5.0 out of 5 stars Essential reading
This is one of the most entertaining and intellectually engaging books I've come across in a long while. Read more
Published on Jun 28 2004 by chrisbooth34

5.0 out of 5 stars PEARLS
Unlike in his New Yorker column, James Surowiecki takes far too long to support his thesis in practical terms--but when he does the details, insights and perspective are nothing... Read more
Published on Jun 23 2004 by Byron Reimus

4.0 out of 5 stars Why The Collective Wisdom of Crowds is Right (Sometimes)
The interesting thesis of the book, if I understand correctly, is that sometimes the viewpoint of the crowd is better than the opinion of a sole, or a few experts. Read more
Published on Jun 20 2004 by Ron Dwyer

5.0 out of 5 stars A Counter-Intuitive Notion
In 1906, Francis Galton, known for his work on statistics and heredity, came across a weight-judging contest at the West of England Fat Stock and Poultry Exhibition. Read more
Published on Jun 14 2004 by Craig L. Howe

5.0 out of 5 stars Excellent
I'm a big fan of James Surowiecki's "Financial Page" column in The New Yorker. He's consistently able to come up with unusual takes on seemingly familiar topics, and he... Read more
Published on Jun 13 2004 by Steven Kurson

5.0 out of 5 stars The masses can be much smarter than we give it credit.
This is a very interesting book that covers many complicated subjects related to group decisions vs. individual decisions. Read more
Published on Jun 13 2004 by Gaetan Lion

5.0 out of 5 stars Intriguing and useful
I decided to read this book after reading an essay that Surowiecki wrote in Wired, arguing that companies and organizations in general put too much trust in the people at the very... Read more
Published on Jun 13 2004

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