Interdependence, Part 2: The Wisdom of Crowds

Rev. Paul Beckel

First Universalist Unitarian Church ~ www.uuwausau.org

March 20, 2005

 

 

...a young man ran and told Moses, “Eldad and Medad are prophesying in the camp.” And Joshua the son of Nun, the minister of Moses, one of his chosen men, said, “My lord Moses, forbid them.” But Moses said to him, “Are you jealous for my sake? Would that all the Lord’s people were prophets, that the Lord would put his spirit upon them!” Numbers 11:27-29

 

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The central task of the religious community is to unveil the bonds that bind each to all. There is a connectedness, a relationship discovered amid the particulars of our own lives and the lives of others. Once felt, it inspires us to act for justice.

 

It is the church that assures us that we are not struggling for justice on our own, but as members of a larger community. The religious community is essential, for alone our vision is too narrow to see all that must be seen, and our strength too limited to do all that must be done. Together, our vision widens and our strength is renewed.

                                                Mark Morrison-Reed

 

INTRODUCTION

If you’ve seen today’s title, “The Wisdom of Crowds.” you may be expecting me to talk about how powerful we can be if we would all just get along, be agreeable, chip in, and work together. Ahhh gee whiz.... And I could say that. I could offer a touchy feely, Mr. Rogers Neighborhood, new agey, panentheistic ode to thoughtful collaboration and synergy. I could talk that way because I affirm all of that idealism. But according to the book from which I borrowed the title today, the groups which are most wise are groups of independent individuals with free minds... people who are not too quick to compromise... and not overly influenced by their allegiance to the group.

 

GATHERING SONG                        I Wish I Knew How        #151

CHILDREN’S FOCUS                     A Walk in the Rain with Brain

[Jane Beckel introduced this book by expressing her enthusiasm about having met the author, Edward Hallowell, who spoke at a school counselors’ conference a few weeks ago.  Hallowell, a lecturer at Harvard Medical School, has written many adult books; this is his first one for children. Hallowell has been diagnosed with Attention Deficit Disorder (ADD). He says he doesn’t appreciate the name of this disease, but acknowledges that his brain does work quite differently than other brains he’s become familiar with. He recognizes some downsides to the way his brain works, and knows that he has to be cautious and aware of these realities. But he still sees the way his brain works as a blessing, and he wouldn’t want it any other way. The story is an ode to the varieties of ways that human brains work, and how unfortunate it is that we’ve come up with such a narrow definition of “smart.” For a truly smart brain is one which does what it can, whether that be artistic, active, interpersonal, or reflective, etc.]

 

CHILDREN’S BLESSING               The Greatest Love of All

RESPONSIVE READING               “The Free Mind”             #592

SHARING OUR GIFTS                  Ain’t No Stopping Us Now

MESSAGE, Part I

It can be hard to be optimistic about groups of people, about their collective wisdom, or about the effect that humans as a whole are having on one another and on the world that we share. So—“The wisdom of crowds?!” That’s a riot. Are you kidding? I mean, people are stupid enough on their own. But at least individuals can be contained. But crowds—the masses...packs, swarms, gangs, mobs...they’re dangerous!

 

And arrogant! I don’t know if I heard right this morning that they are going to re-insert Terry Schiavo’s feeding tube so that the U.S. congress can debate whether she has the right to die. Yes, crowds can really be awful in presuming to make decisions that belong in the private realm.

 

Still. Today I’m going to challenge the conventional cynicism that groups are inherently dim, dense, and slow.  That anything created by a committee is a lackluster compromise; that compiling the insights of all and sundry leads to a mediocre average; that groups necessarily sink to their lowest common denominator. James Surowieki, who writes “The Financial Page” for The New Yorker Magazine, suggests in his new book, The Wisdom of Crowds, some very counter-intuitive ideas about how groups—given the right conditions—can be remarkably intelligent, and often even smarter than the smartest people in the group.

 

We’d better hope he’s right. Because if we believe that groups generally act insane or stupid, how can we justify democratic institutions? Are we saying that we’d rather have decisions made by a single wise president, or pope? By self-appointed aristocrats? Or by your idiotic boss? I think not. So we must look around to find something to give us hope. Let’s consider the chili dump.

 

Last month a bunch of people brought chili to a potluck. Everyone’s contribution was dumped together—either into the vegetarian pot or the meaty pot. I personally expected the results to be pretty disgusting. But, still, I concocted my own spicy contribution, and dumped it in with the others. All simmered for an hour or so while we listened to the choir from the James Reeb congregation, who sang praise to the power of collective voices. Then we ate. I ate two bowls from each pot—just to be sure. I thought they were both great.  Each of you, no doubt, came to your own conclusion.

 

The same phenomenon occurs when groups attempt to estimate the weight of an ox, or guess how many jellybeans are in a jar.  In these cases, the average of the whole group often turns out to be much closer to the correct answer than even the best individual guess.

 

These uncomplicated examples suggest some of the fundamentals about group intelligence at its best. In each of these cases, people make extreme guesses high and low (or spicy and mild). When you combine all of the guesses, the individual errors cancel each other out.

 

The resulting formula is fairly simple: Information, minus error (because the errors have cancelled each other out) = good judgment. This may seem simplistic because these are problems that actually have answers. In the case of the chili, the answer is not quite as objective as how many jellybeans—but still you can roughly determine whether or not it worked. 

 

But does this have anything to do with the truly important and challenging problems that groups of people need to make together: a jury determining someone’s guilt or innocence... congress deciding whether to allow drilling in a national wildlife reserve... a congregation deciding how to maintain its property—or maybe something even more difficult, like how to fulfill its mission... or even what its mission ought to be. Can groups make intelligent decisions about things like this?

 

Before we go on to these extremely difficult cases—including cases where we may not even know if we’ve made a good decision—I want to say more about the basic conditions which are present when groups seem to be at their best. For even these simple examples to work—that is, to utilize the formula, “information minus error equals good judgment”—there has to be at least some information available. It’s not going to work for something random—like guess what number I’m thinking of.

 

So, there has to be some information. But how individuals process that information will vary, like the brain says in A Walk in the Rain with Brain. In order to be intelligent, groups do not need to be composed of traditionally intelligent people, or dominated by experts.

 

In addition to the necessity of information being available, Surowiecki emphasizes three conditions required for a crowd to be wise: Diversity, decentralization, and independence.

 

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By diversity I’m not talking about age race gender class sexual orientation physical ability theology, and national origin, though these demographic categories often entail diversity in life experience, points of view, and ways of approaching a problem, which is the diversity that helps a group become more intelligent. Life experience, points of view, and ways of approaching a problem.

 

You see this kind of intelligence in nature in biodiversity—in the many different ways that living things adapt to their environment. Mother Gaia develops viable species by creating of lots of variations, and then killing most of them off. This strategy is used to rapidly develop new strains of bugs in response to pesticides and antibiotics. The marketplace does the same thing with a plethora of options in the shampoo aisle. Growing churches do the same with diverse programs. Create and destroy and see what survives. Diversity.

 

Homogenous groups of intelligent people do not always make intelligent decisions; in part because they think too much alike. For example, in the 1970s a team of NASA scientists brought the Apollo 13 astronauts back to earth safely after a serious malfunction. This was a very different group from those guiding the last space shuttle, Columbia, which came back to us in pieces. If you conjure an image of NASA scientists in the early ’70s, you might not think about diversity. White males in white shirts, crew cuts, and horn-rimmed glasses.  Compare this to today’s men and women of every race in haphazard dress. But the earlier group came to the young NASA program after success in a variety of industries. Today’s NASA engineers tend to come straight from graduate school.

 

This is just one example of a group of “smart” people who may not be as good at assessing and solving a problem as a group with a wider range in perspectives and skills. Ironically, group intelligence may require a constant influx of naiveté and ignorance.

 

“...Groups that are too much alike find it harder to keep learning, because each member is bringing less new information to the table. Homogenous groups are great at doing what they do well, but they become progressively less able to investigate alternatives.” Does this mean that Unitarian Universalist congregations might do better if we stopped screening new members according to their SAT scores?

 

==

Effective groups often outperform the best members of the group when there is diversity, decentralization, and independence.

 

What is decentralization? Flocks of birds are made up of hundreds or thousands of individuals forming and reforming in fabulous coordination, but following no one’s command. Each bird follows its instinct for self-preservation and a few simple rules: try to get as close to the center of the flock as possible, stay a few inches away from everyone else.

 

Decentralization. Think of the world wide web. Tim Berners Lee, inventor of the world wide web, says that decentralization is one of the key elements that makes it work.

 

The web is powerful and less vulnerable to breakdown because it has no center. Every node is connected but also independent. Computers all over the world link with one another based upon minimal rules and communication standards and no one controls it, or judges what is good, bad, or ugly.

 

Tim Berners Lee concludes his book, Weaving the Web, by describing why he became a Unitarian Universalist—how he sees our way of doing religion to be comparable to the powerful interdependence he designed into the world wide web.

 

Can decentralization help groups to make good decisions? This is a pretty important question at a time when massive governmental agencies are being re-configured and billions of dollars spent in an attempt to consolidate “intelligence” in order to prevent terrorism. Are we going to be more safe with a single intelligence czar? As always, the devil is in the details. Will the new intelligence agency be like Soviet central planning? Or will it be like the world wide web—an amorphous decentralized system with excellent tools that can be used to aggregate relevant information?

 

(In my view, God is a decentralized ever-expanding whole. We’re still developing our abilities to access its mystery. We would do well to avoid the illusion that it can be captured or controlled.)

 

Centralized systems are vulnerable. If one part fails the whole thing often fails. But worse, a centralized group is not as good at decision-making because the individuals are too focused on pleasing the boss instead of trying to reach the correct solution.

 

Decentralized systems are connected, but not controlled. The scientific community is an incredibly powerful example. When the SARS epidemic hit, dozens of labs shared information and the pathogen was quickly discovered. No one was in charge and no one lab could take credit for the success. The whole world benefited.

 

Advances in science occur so rapidly and effectively because research results are published openly and are judged by the community as a whole. This kind of openness is essential to a decentralized society. The Daily Herald has had a wonderful series of articles this week – “Sunshine Week”—about the importance of keeping public records open and available. I found this quote from Friday especially to the point: The more government hides, even in the name of keeping us safe “the more estranged it becomes from democratic principles and traditions. And the less it benefits from the wisdom, experience, enterprise, ingenuity, and support of its citizens.” [Paul McMasters – WDH 3-16-05]

 

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Effective groups often outperform the best individuals in the group—under conditions of diversity, decentralization, and independence.

 

What is independence? In a few minutes we’re going to sing the song: “I’m on my way, to the freedom land,” etc.... The next verses talk about inviting others to come along...then it concludes: “if they say no I’ll go anyhow....” It’s a pretty stark independence being celebrated in that song... and I admit I’ve always been a little ambivalent about our singing it as a group.

 

But Surowiecki celebrates a fairly stark independence. Having an independent mind means not being overly influenced by others, and not overly influencing others. Interaction and mutual influence may make individuals in a group smarter, but sometimes it can actually make the group as a whole dumber!

 

Consider fads for example—when the influence of a few people begins to cascade. The more people do x, the more it appears to be a good choice.

 

Making a decision based upon what others are doing is not entirely irrational. Others are often correct. The living tradition we share draws upon many sources, including the examples we observe from courageous principled people. We should always observe and often follow others’ examples. Because we can’t test everything ourselves. I rely a great deal on Consumer Reports Magazine, which uses information from its own empirical testing, but also from its large diverse group of readers.

 

But in cascades, decisions aren’t made based upon good information. In a cascade, many people are influenced by a few, often due to social connections. There may be the appearance of independent judgment, but, for example in the telecom stock market bubble of the 1990s, everyone was just saying wow, everything is going up, I’d better jump in!

 

Imitation can be a rational tactic. It’s very often true that others know better than I do. But there’s good imitation and bad imitation. Good imitation is when we try to incorporate what others have learned, but ultimately make independent decisions based upon our own experience. For example, some researchers observed the following learning within a group of monkeys. They put some wheat out on the beach. The monkeys couldn’t eat it because it got too mixed up with the sand. But eventually one monkey figured out that he could throw hands full of sand and wheat into the water. The sand sank the wheat floated and he got a good meal. Before long all of the monkeys had learned to imitate this brilliant discovery.

 

Imitation is an incredibly valuable form of learning because new ideas are unlikely to be discovered by each person (or monkey) acting independently.

 

On the other hand imitation is bad when we are influenced by the crowd or by a charismatic expert...and then continue to follow their lead regardless of the consequences.

 

This dangerous kind of groupthink is especially likely in homogenous groups where a single authority—or group allegiance—may have undue influence. As wonderful as it is sometimes to be with a group of people who think as you do, small homogenous groups can become insulated from outside opinions, and lose their tolerance for dissent.

 

Smarter groups can be full of healthy internal conflict. In my opinion, the smartest decision that this congregation has made recently was also the most contentious. Before we hired our intern minister we had a very open debate about it, and we found ourselves quite divided. It was a lovely process with a fantastic result.

 

An openness to dissent is essential to healthy groups. Even a small amount of dissent opens the door for people to speak up. The expression of diverse opinions in a group not only adds additional perspectives, it makes it easier for people to think and to speak independently. Open expression of minority viewpoints is essential. Even when the viewpoints themselves are unwise, this forces a group to clarify itself, and arrive at more nuanced conclusions.

 

The stock market is a good example of independence leading to benefits for individuals, but also a kind of wisdom arising out of the masses. For example in 1986, when the space shuttle Challenger was destroyed just after lift-off, it took weeks for NASA to determine that the cause of the accident was in the O-rings. But the stock market identified the culprit much sooner. There were four publicly traded companies involved in the launch. The prices of three of these companies fell immediately, but quickly stabilized. The price of the fourth company, the one responsible for the O-rings, fell much further and did not recover. The independent decisions made by countless thousands of investors, who themselves did not have sufficient information to know who was at fault, predicted the source of the problem within minutes after the explosion.

 

SINGING TOGETHER                    I’m On My Way              #116

CONCLUSION?

In the examples I’ve discussed so far, independent members of groups have needed only a vague awareness of one another. In fact, they were probably more successful when they did not really identify with one another or think of themselves as a group.  But there are other situations, of course, in which we do need to act consciously as a group, and we do need to pay close attention to what others in the group are doing and thinking.

 

Paying taxes, for example. People tend to be more inclined to pay taxes if they don’t feel like suckers... if they believe that other people are paying too. It would be more rational for us as individuals to cheat on our taxes, and enjoy government services while other people pay for them. It would be more rational to shirk our duties at work, or not tip at a restaurant. In all likelihood, we’d never get caught. But amazingly, enough people do the right thing to create a civil society...and thereby create a positive feedback loop which then perpetuates itself. 

 

That is, people cooperate with one another, the results become visible, and we choose to continue.  But how did this get started? Who had the foresight to initiate this civilizing cycle?

 

==

I only have time today (or in any sermon) to throw out a hypothesis. I can offer some examples but I can’t really prove anything from the pulpit. As always, you will have to go out into the world, gather evidence, and come to your own conclusions. As you do so, I would urge that you don’t assume that groups are stupid. And don’t assume they’re wise. I predict that your observations will show groups making both good and bad decisions. Families, businesses, nonprofits, and governmental groups. What I challenge you to pay attention to is this: what are the characteristics of groups that succeed? What is the role of diversity, decentralization, and independence? How can YOU act to shift groups toward effectiveness?

 

So, work toward your own conclusion, but do so with great care. One of the greatest dangers within groups is when we come to our conclusions before assessing all of the evidence. And then we dismiss or misinterpret new evidence which doesn’t fit our pre-made conclusion. If there is pressure within our group to conform, then the only new evidence that we’ll noticed is that which confirms our bias. We fault creationists for doing this and calling it “science.” But how often do we do the same thing in other areas of our lives?

 

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On the other extreme, we have the danger of inertia. That is: never coming to any conclusions. For example, an inevitable result of thousands of well-intended actions by a group sharing a building, using things, buying and donating things, putting them away, or not...is that  stuff accumulates. Fabulous stuff like I mentioned last time (this $500?! bowl) that we don’t even realize how valuable it is...and junk. And, stuff that once was fabulous but either carelessness or normal wear and tear has turned into junk. Yesterday Brad Lantzer and Blake Burton volunteered to clean out the sound room and the hallway behind the sanctuary, which had succumbed to inertia. It was like a chili dump that no one had cooked, stirred, or eaten for a long time... reminding us again that not to decide is to decide.

 

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The third of three services on the theme of “Interdependence” will be the Sunday after next. It asks: within a group, if we are diverse, decentralized, and independent... if we are all equals... and if we do not wish for entropy and inertia to decide things for us... Then: what is leadership?

 

SENDING HYMN                We’ve Got The Power

POSTLUDE                           Caravan of Love