Theg Tipping Point by Malcolm Gladwell . .. . The …

1 A NEW YORK TIMES BUSINESS BESTSELLER "As entertaining and thought-provoking as The Tipping Point by Malcolm Gladwell .. the wisdom of crowds ranges far and wide." Tlte Boston Glohe the wisdom of crowds JAMES SUROWIECKI WITH A NEW AFTERWORD BY THE AUTHOR Sociology/Economics A BUSINESSWEEK BESTSELLER AND BEST BOOK OF THE YEAR BEST BOOK OF THE YEAR "A fun, intriguing read and a concept with enormous potential for CEOs and politicos alike." NEWSWEEK In this fascinating book, New Yorker business columnist James Surowiecki explores a decep-tively simple idea: Large groups of people are smarter than an elite few, no matter how brilliant better at solving problems, fostering innovation, coming to wise decisions, even predicting the future.

2 With boundless erudition and in delightfully clear prose, Surowiecki ranges across fields as diverse as popular culture, psychology, ant biology, behavioral economics, artificial intelligence, mili-tary history, and politics to show how this simple idea offers important lessons for how we live our lives, select our leaders, run our companies, and think about our world. "This book is not just revolutionary but essential reading for everyone." THE CHRISTIAN SCIENCE MONITOR "Provocative.. Musters ample proof that the payoff from heeding collective intelligence is greater than many of us imagine." BUSINESSWEEK "There's no danger of dumbing down for the masses who read this singular book.

3 " ENTERTAINMENT WEEKLY Cover photograph Leo Mason/Getty Images Author photograph David Surowiecki Cover design by John Gail $ CAN. $ ISBN 978-0-385-72170-7 9 780385 721707 Praise for James Surowiecki's the wisdom of crowds "Clearly and persuasively written." : r: Newsday "Convincingly argues that under the right circumstances, it's the crowd that's wiser than even society's smartest individuals. New Yorker business columnist Surowiecki enlivens his argument with dozens of illuminating anecdotes and case studies from business, social psychology, sports and everyday life." Entertainment Weekly "Dazzling.. One of those books that will turn your world upside down.

4 It's an adventure story, a manifesto, and the most brilliant book on business, society, and everyday life that I've read in years." Malcolm Gladwell , author of The Tipping Point "Surowiecki's clear writing and well-chosen examples render com-plicated mathematical and sociological theories easy to grasp.. [His] accounts of how the wisdom of crowds has formed the world we live in will thrill trivia mavens and may make a better investor (or football coach) out of anyone who takes its conclusions to heart." Time Out New York "This book should be in every thinking businessperson's library. Without exception." Po Bronson, author of What Should I Do with My Life?

5 "Drawing from biology, behavioral economics, and computer sci-ence, Surowiecki offers answers to such timeless and often rhetorical questions as "Why does the line you're standing in al-ways seem to move the slowest?" and "Why is there so much garbage on TV?" The result is a highly original set of conclusions about how our world works." Seed, magazine 1 > : , "' - if . < . r "As readers of Surowiecki's writing in The New Yorker will know, he has a rare gift for combining rigorous thought with entertaining ex-ample. [ the wisdom of crowds ] is packed with amusing ideas that leave the reader feeling better-educated." Financial Times (London) "The book is deeply researched and well-written, and the result is a fascinating read.

6 " Deseret Morning News "Jim Surowiecki has done the near impossible. He's taken what in other hands would be a dense and difficult subject and given us a book that is engaging, surprising, and utterly persuasive. The Wis-dom of Crowds will change the way you think about markets, eco-nomics, and a large swatch of everyday life." Joe Nocera, editorial director of Fortune magazine and author of A Piece of the Action "Makes a compelling case." , The Gazette (Montreal) "Deftly compressing a small library's worth of research into a single slim and readable volume, 'The Financial Page' columnist at The New Yorker makes his bid to capture the Zeitgeist as his colleague Malcolm Gladwell did with The Tipping Point .

7 The author has produced something surprising and new: a sociological tract as gripping as a good novel." Best Life "Surowiecki is a patient and vivid writer with a knack for telling ex-amples." The Denver Post "Most crowds of readers would agree that Jim Surowiecki is one of the most interesting journalists working today. Now he has written a book that will exceed even their expectations. Anyone open to re-thinking their most basic assumptions people who enjoyed The Tipping Point , say will love this book." Michael Lewis, author of Moneyhall "The author has a knack for translating the most algebraic of re-search papers into bright expository prose.

8 " The New York Times Book Review "Surowiecki's is a big-idea book." Salon "It has become increasingly recognized that the average opinions of groups is frequently more accurate than most individuals in the group. The author has written a most interesting survey of the many studies in this area and discussed the limits as well as the achievements of self-organization." Kenneth Arrow, winner of the Nobel Prize in Economics and Professor of Economics (Emeritus), Stanford University "An illuminating book." Detroit Free Press JAMES SUROWIECKI the wisdom of crowds James Surowiecki is a staff writer at The New Yorker, where he writes the popular business column, "The Financial Page.

9 " His work has appeared in a wide range of publica-tions, including The New York Times, The Wall Street Journal, Artforum, Wired, and Slate. He lives in Brooklyn, New York. For more information, visit I the wisdom of crowds the wisdom of crowds JAMES SUROWIECKI ,.. ANCHOR BOOKS A Division of Random House, Inc. New York FIRST ANCHOR BOOKS EDITION, AUGUST 2005 Copyright 2004, 2005 by James Surowiecki All rights reserved. Published in the United States by Anchor Books, a division of Random House, Inc., New York, and in Canada by Random House of Canada Limited, Toronto. Originally published in hardcover in the United States in slightly different form by Doubleday, a division of Random House, Inc.

10 , New York, in 2004. Anchor Books and colophon are registered trademarks of Random House, Inc. Some of the material in this book was originally published in different form in The New Yorker. The Library of Congress has cataloged the Doubleday edition as follows: Surowiecki, James, 1967- the wisdom of crowds : why the many are smarter than the few and how collective wisdom shapes business, economies, societies, and nations / James Surowiecki. p. cm. Includes bibliographical references. 1. Consensus (Social sciences) 2. Common good. I. Title. 2003 '8 dc22 2003070095 Anchor ISBN: 0-385-72170-6 Printed in the United States of America 10 To Mom and Dad CONTENTS Introduction xi PART I 1.