Wise Crowds, Clever Meta-Inductivists

Formal and empirical work on the Wisdom of Crowds has extolled the virtue of diverse and independent judgment as essential to the maintenance of ‘wise crowds’. In other words, com-munication and imitation among members of a group may have the negative effect of decreasing the aggregate wisdom of the group. In contrast, it is demonstrable that certain meta-inductive methods provide optimal means for predicting unknown events. Such meta-inductive methods are essentially imitative, where the predictions of other agents are imitated to the extent that those agents have proven successful in the past. Despite the (self-serving) optimality of meta-inductive methods, their imitative nature may undermine the ‘wisdom of the crowd’, since these methods recommend that agents imitate the predictions of other agents. In this paper, I present a replication of selected results of Thorn and Schurz, illustrating the effect on a group’s performance that may result from having members of a group adopt meta-inductive methods. I then expand on the work of Thorn and Schurz by considering three simple measures by which meta-inductive prediction methods may improve their own performance, while simultaneously mitigating their negative impact on group performance. The effects of adopting these maneuvers are investigated using computer simulations.