The Wisdom of Crowds: Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations

The Wisdom of Crowds builds on traditional research into how people make decisions, drawing especially from economics, sociology, psychology, and organizational theory.

Behavioral economics emerged in the late 20th century as a response to classical economic theory, which assumed that people act as perfectly rational agents. Instead, behavioral economists demonstrated through experiments that human decision-making is often shaped by heuristics, biases, and emotions. This field provides much of the foundation for Surowiecki’s argument since it explains why individuals alone are unreliable predictors of outcomes. Placed alongside Surowiecki’s examples, this context shows how his work is both an extension of and a challenge to traditional economic thought.

Sociology and social psychology contribute further insights into collective behavior. Concepts like groupthink, conformity pressure, and social imitation show how individual reasoning can be distorted by the presence of others. At the same time, sociology also highlights the value of diverse perspectives and loosely connected networks, which allow new ideas to circulate and prevent premature consensus. These ideas frame the conditions under which groups can become either dangerously uniform or surprisingly innovative.

Organizational theory offers the structural framework for Surowiecki’s work. The field examines how authority, responsibility, and communication are distributed within institutions, ranging from rigid hierarchies to decentralized systems.