The most naive approaches to the problem have some serious problems. Worst of all, bash.org and qdb.us display quotes — users can vote for a quote (+1) or down (-1), and the list of best quotes is sorted by the total amount of the network. This suffers from a terrible time shift - older quotes have accumulated a huge amount of positive voices through simple longevity, even if they are only slightly humorous. This algorithm could make sense if the jokes got funnier when they got older, but - believe me - they don't.
There are various attempts to fix this - looking at the number of positive votes for a period of time, weighing more recent votes, introducing a decay system for older votes, calculating the ratio of positive and negative votes, etc. Most of them suffer from other disadvantages.
The best solution - I think, is that the Funniest The Cutest , The Fairest and Best thing use websites are a modified Condorcet voting system :
The system gives everyone a number based on what it came from, what percentage of them usually hits. Thus, everyone gets a percentage score of NumberOfThingsIBeat / (NumberOfThingsIBeat + NumberOfThingsThatBeatMe). In addition, items are prohibited from the top list until they are compared with a reasonable percentage of the set.
If there is a Condorcet winner in the kit, this method will find it. Since this is unlikely, given the statistical nature, he finds one that is “closest” to the Condorcet winner.
For more information on implementing such systems, the Wikipedia page on Ranked Pairs should be helpful.
The algorithm requires people to compare two objects (your Pick-A-or-B option), but frankly, that's good. I consider it very well accepted in decision theory that people compare two objects much better than they are in abstract ranking. Millions of years of evolution make us choose the best apple by the tree, but it’s scary to decide how close we have chosen the apple that we see in real platonic form. (This, by the way, is why the Analytical Hierarchy process is so elegant ... but it's a little different from the topic.)
One final point is that SO uses an algorithm to find the best answers, which is very similar to the bash.org algorithm to find the best quote. It works well here, but it is terribly scary there - largely because the old, highly rated, but now outdated answer here is likely to be edited. bash.org does not allow editing, and it is unclear how you are going to edit ten-year-old jokes about modern Internet memes, even if you could ... In any case, I want to say that the right algorithm usually depends on the details of your problem .: -)