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

Under what circumstances do crowds fail to make intelligent conclusions? Use one practical example to defend your answer. Then, evaluate whether the failure is due to the crowd itself or the way the system surrounding the crowd was designed.

What are the differences between cognitive and coordination problems? How does this affect crowd wisdom? Analyze how these distinctions apply to real-world issues such as traffic management or financial markets.

To what extent does herding affect crowd wisdom? Discuss by using at least one example. Explain whether herding is always harmful or if there are circumstances where it can serve a functional purpose for the group.

What is decentralization, and how does it help businesses or organizations make more informed decisions? Compare one successful and one failed case of decentralization to illustrate why structure matters as much as principle.

Can small, highly specialized groups be wise? Discuss this in relation to large and diverse crowds. Support your answer with examples from the book, and evaluate whether small groups can avoid the problems of groupthink and polarization.

Surowiecki says that the free market is a good example of crowd coordination. Consider this, and discuss both the strengths of markets as aggregators of knowledge and the vulnerabilities that lead to bubbles or crashes.

Why are hierarchical organizations often inefficient? Analyze how hierarchies suppress diversity, independence, and decentralization, and explore whether any hierarchical structures can still foster elements of crowd wisdom.

How does short selling on the stock market help prevent bubbles and promote crowd wisdom? Anchor your answer in the concepts of diversity, independence, and decentralization. Consider the ethical debates around short selling and whether its role as a corrective outweighs its potential downsides.