Each person’s guess, you might say, has two components: information and error. Subtract the error, and you’re left with the information.
For the group to be smart, there has to be at least some information in the “information” part of the “information minus error” equation.
what Google is doing is asking the entire Web to decide which page contains the most useful information, and the page that gets the most votes goes first on the list.
a decision market’s fundamental characteristics—diversity, independence, and decentralization—are guaranteed to make for good group decisions. And because such markets represent a relatively simple and quick means of transforming many diverse opinions into a single collective judgment, they have the chance to improve dramatically the way organizations make decisions and think about the future.