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The Crowdfunding Revolution: How to Raise Venture Capital Using Social Media by Dan Marom, Kevin Lawton

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Chapter | 10PREDICTION MARKETS AND MINING THE COLLECTIVE IQ

The short answer is that communities are better at both identifying talented people and evaluating their output.

—Jeff Howe

Imagine if intelligence could be broken down into a spectral graph, like the graphs you may have encountered in physics class, each bar representing the quantity of a particular band or component (for example, a frequency band) of the spectrum. For that matter, we could extend the spectral graph analogy to nearly any dimension such as personality, creativity, or diversity. Now let’s say for sake of argument, that to solve a given problem, we know all of the components necessary to achieve a solution ahead of time. And therefore, we are able to create a representative ...

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