The Wisdom of Crowds: Individual Irrationality

notes from Surowiecki, James.┬áThe Wisdom of Crowds. (Anchor: 2005). Markets work according to theory, even when real people (aka imperfect agents) are working within them, with only partial information. Cooperation problems: can be solved even if each individual is single-mindedly pursuing his own self-interest. People are not fully rational players — they care about what’s … Continue reading