3.3.0 Introduction

Recall that the Jury Theorem states that where in a choice between two alternatives voters are more likely to be right than wrong, then as the number of voters increases, the probability that a majority vote is correct tends toward certainty. The reverse, however, is also true: if the average voter is more likely to be wrong than right, adding more voters drives group competence down to zero. This "dark side" of the Jury Theorem, as Sunstein refers to it, raises the question of whether shareholders are indeed more likely to be right than wrong. This section identifies and explores four mechanisms that increase the probability that shareholders are right, i.e., that collectively they vote for the option that maximizes shareholder value: informed voting, rational voting, independent voting; and sincere voting.