27min chapter

How I Write cover image

Michael Mauboussin: How To Find Your Edge As A Writer

How I Write

CHAPTER

The Power of Collective Wisdom

Exploring the influence of Stiglitz's paper and the wisdom of crowds on market efficiency, this chapter delves into the aggregation of information and the impact of incentives on decision-making. Through examples like the jelly bean experiment, it showcases the effectiveness of collective guesses and discusses the balance between information gathering costs and benefits in financial markets.

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