Daniel Kahneman and Olivier Sibony: Noise
The Book Club
00:00
The Wisdom of Crowd
Noise is a problem even when you don't know the true answer. There is no true objective value of how many years of prison the defendant should get for a particular crime. But if one judge says that is one year and another one says it's 15, you know you have a problem. That does seem to be one respect in which noise seems to be advantageous. You talk about the wisdom of crowds idea. The person who made the concept of wisdom of crowd so popular made a real disservice because crowds are not wise of average.
Transcript
Play full episode
