Chapter 10. Collective Intelligence, Social Media, and Web Market Monitors
The words of the prophets are written on the subway walls.
—Simon & Garfunkel, "The Sound of Silence"
Opinions vary widely on the value of collective wisdom, with ample supporting evidence both for and against. The Internet has many positive examples: The collective ratings at consumer sites like Amazon for books (and almost anything that can be shipped in a box), Newegg for electronics, and Yelp for restaurants are almost always reliable when there is a strong consensus among a large crowd. When 95 out of 100 people say a software program doesn't work, it is probably no prize (and the other five likely work for the publisher). When 250 out of 275 people rave about the latest Asian Cajun spot and the waiting line winds around the block, dinner is not likely to be too bad. When every other customer complains about meeting a man with a stomach pump, you're better off packing your own lunch.
Markets themselves are a form of collective intelligence (CI), and since transactions occur, they clearly arrive at prices seen as fair by buyers and sellers alike for everything from stocks to Pez dispensers (the first eBay merchandise). A recent book by James Surowiecki, The Wisdom of Crowds: Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations (Random House, 2004) has nearly 300 pages of examples of group wisdom. One such example is the television quiz show ...
