Final answer:
The wisdom of crowds concept is based on the collective intelligence of a large and diverse group, not solely a group of experts, and can lead to accurate outcomes under the right conditions. However, it is a false belief that such a crowd or group of experts is always correct, as individuals can be swayed by social influences and biases.
Step-by-step explanation:
The statement that the wisdom of crowds concept is based on the belief that a group of experts is always correct in its assessment of a problem is false. The wisdom of crowds concept does not strictly apply to a group of experts but also to the collective judgment of a diverse and large group of individuals, which, under the right circumstances, can often make more accurate decisions and predictions than even the most expert individuals among them. The theory is supported by the idea that the diverse information and heuristics brought by various individuals can cancel out individual errors, leading to better aggregated outcomes.
This concept, however, does not imply infallibility; crowds can be influenced by factors such as conformity pressure, misinformation, and other social biases, which can sometimes lead to erroneous conclusions. In the context of informational social influence, people are more likely to follow the crowd when the answer to a question is unclear and when they believe the group has some form of expertise. This can be observed in Asch's conformity experiments, showcasing how individuals may align with a majority view, particularly when they lack a strong basis for their own opinion or when they have allies in their dissent.