Implementing the “wisdom of the crowd”

Research output: Contribution to journalArticlepeer-review


We study a novel mechanism design model in which agents each arrive sequentially and choose one action from a set of actions with unknown rewards. The information revealed by the principal affects the incentives of the agents to explore and generate new information. We characterize the optimal disclosure policy of a planner whose goal is to maximize social welfare. One interpretation of our result is the implementation of what is known as the “wisdom of the crowd.” This topic has become increasingly relevant with the rapid spread of the Internet over the past decade.

Original languageAmerican English
Pages (from-to)988-1012
Number of pages25
JournalJournal of Political Economy
Issue number5
StatePublished - 1 Oct 2014

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics


Dive into the research topics of 'Implementing the “wisdom of the crowd”'. Together they form a unique fingerprint.

Cite this