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Tuesday, October 9, 2007

Invisible hand vs Wisdom of Crowds

I was flipping through some book and a question hit me. Is the book Wisdom of Crowds a restatement of Adam Smith's "Invisible Hand" that guides economics and capitalism? Think about it, if the market knows best, and the market is driven by masses of people buying or not buying something, isn't that the same as Surowiecki's point that if we all vote, then the outcome is best?

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