Through incentives that encourage participants to solve design problems, contests can use the benefits of crowdsourcing to stimulate innovation.
Shown by ant groups successfully taking a Cheerio to a nest, sometimes the wisdom of crowds depends on the brains of an individual leader.
Through the price system, because many consumers and businesses make buying and selling decisions for the same good or service, price conveys information.
In The Big Short, Michael Lewis explains the subprime bubble mentality through a quote about CNBC media coverage. “…they weren’t in touch with reality anymore. If something negative happened, they’d spin it positive. If something positive happened, they’d blow it out…