Social Media and the Wisdom of Crowds
James Surowiecki’s The Wisdom of Crowds, published in 2004, has been influential in financial markets and corporate transformations. It also has plenty of ideas relevant to social networking’s future. The book’s leading concept is that that collective intelligence – aggregating diverse opinions – can out-perform judgments made by alleged experts and executives. Estimates are better when they pool many invidividual investors’ bets; decisions are better when produced by decentralized organizations than by top-down initiatives.