cccd9fdb_brary_of_Economics_and_Liberty__ast_Highlights_HIDE_HIGHLIGHTS
[Time] 7:02
Congressional staffers and law professors systematically get wrong what proportion of American work force earns the minimum wage or less. (A: 3% or under.) Does crowd wisdom approach only get you the right answer in relatively unimportant matters like the weight of a horse? Is it just a parlor trick? No, it's the mechanism, not the importance of the question. Scott Page, Michigan, random error in large groups. Just want to know whether or not you have confidence in the people being asked. Statistical collections of experts typically outperform non-experts. To show whether the method works you have to specify measurable, factual questions. In business domain: trick is to figure out whether there is or isn't systematic bias.
Sunstein on Infotopia, Information and Decision-Making | EconTalk | Library of Economics and Liberty