LONG-TERM FORECASTING WITH PREDICTION MARKETS – A FIELD EXPERIMENT ON APPLICABILITY AND EXPERT CONFIDENCE

2012 ◽  
Vol 2 (2) ◽  
pp. 71-91 ◽  
Author(s):  
Andreas Graefe ◽  
Christof Weinhardt

While prediction markets have become increasingly popular to forecast the near-term future, the literature provides little evidence on how they perform for long-term problems. For assessing the long-term, decision-makers traditionally rely on experts, although empirical research disputes the value of expert advice. Reporting on findings from a field experiment in which we implemented two prediction markets in parallel to a Delphi study, this paper addresses two questions. First, we analyze the applicability of prediction markets for long-term problems whose outcome cannot be judged for a long time. Second, by comparing trading behavior of an expert and a student market, we analyze whether there is evidence that supports the assumption that experts possess superior knowledge. Our results show that prediction markets provide similar results as the well-established Delphi method. We conclude that prediction markets appear to be applicable for long-term forecasting. Furthermore, we observe differences in the confidence of experts and non-experts. Our findings indicate that, in contrast to students, experts reveal their information well-considered based on what they think they know. Finally, we discuss how such analyses of market participants’ confidence provide valuable information to decision-makers and may be used to improve on traditional forecasting methods.

Author(s):  
Stephen H. Kaisler ◽  
William H. Money ◽  
Frank Armour ◽  
J. Alberto Espinosa

Big Data refers to data volumes in the range of exabytes (1018th) requiring processing from distributed on-line storage systems with thousands of processors, mainframes or supercomputers where processing speed is measured in GFLOPS. The rate at which data are being collected are accelerating and will approach the zettabyte/year range. Other attributes of Bi Data are also concurrently expanding including variety/variability, velocity, value, and vital concerns for veracity. Storage and data transport technology issues may be solvable in the near-term. However, these communication, quantity management, and processing technologies also represent long-term challenges that require research, paradigms and analytical practices. This paper extends the authors' previous analysis of the issues and challenges with Big Data. It presents a table that contrasts their previous research finding and projects with the state of Big Data today, and their projections of what managers and decision makers will (or should) seek to accomplish as the Big Data universe continues to expand and evolve.


2020 ◽  
Vol 11 (4) ◽  
pp. 977-993
Author(s):  
Marianne T. Lund ◽  
Borgar Aamaas ◽  
Camilla W. Stjern ◽  
Zbigniew Klimont ◽  
Terje K. Berntsen ◽  
...  

Abstract. Mitigation of non-CO2 emissions plays a key role in meeting the Paris Agreement ambitions and sustainable development goals. Implementation of respective policies addressing these targets mainly occur at sectoral and regional levels, and designing efficient mitigation strategies therefore relies on detailed knowledge about the mix of emissions from individual sources and their subsequent climate impact. Here we present a comprehensive dataset of near- and long-term global temperature responses to emissions of CO2 and individual short-lived climate forcers (SLCFs) from 7 sectors and 13 regions – for both present-day emissions and their continued evolution as projected under the Shared Socioeconomic Pathways (SSPs). We demonstrate the key role of CO2 in driving both near- and long-term warming and highlight the importance of mitigating methane emissions from agriculture, waste management, and energy production as the primary strategy to further limit near-term warming. Due to high current emissions of cooling SLCFs, policies targeting end-of-pipe energy sector emissions may result in net added warming unless accompanied by simultaneous methane and/or CO2 reductions. We find that SLCFs are projected to play a continued role in many regions, particularly those including low- to medium-income countries, under most of the SSPs considered here. East Asia, North America, and Europe will remain the largest contributors to total net warming until 2100, regardless of scenario, while South Asia and Africa south of the Sahara overtake Europe by the end of the century in SSP3-7.0 and SSP5-8.5. Our dataset is made available in an accessible format, aimed also at decision makers, to support further assessment of the implications of policy implementation at the sectoral and regional scales.


2013 ◽  
Vol 6 (3) ◽  
pp. 43-61 ◽  
Author(s):  
Werner Antweiler

Most prediction markets focus on events with a short time horizon such as forthcoming elections. Contracts are typically traded for periods measured in weeks, but rarely exceeding a year. There is great interest in using prediction markets for events with a long time horizon such as climate change outcomes. This paper develops an analytic framework for exploring the time horizon limitations of prediction markets and suggests a simple, practical solution: the market operator must invest cash holdings in a diversified financial portfolio that generates returns that reflect individual traders’ heterogeneous attitudes towards risk and return. The analytic framework identifies how the presence of an opportunity cost for investors reduces market liquidity through a participation constraint and biases the equilibrium price through an inherent money-at-risk asymmetry between long and short positions in a prediction market. This paper explores continuous outcome markets, which are relevant for science-related long-term predictions, along with familiar winner-takes-all markets.


Author(s):  
Philipp Schmidt-Thomé

Climate change adaptation is the ability of a society or a natural system to adjust to the (changing) conditions that support life in a certain climate region, including weather extremes in that region. The current discussion on climate change adaptation began in the 1990s, with the publication of the Assessment Reports of the Intergovernmental Panel on Climate Change (IPCC). Since the beginning of the 21st century, most countries, and many regions and municipalities have started to develop and implement climate change adaptation strategies and plans. But since the implementation of adaptation measures must be planned and conducted at the local level, a major challenge is to actually implement adaptation to climate change in practice. One challenge is that scientific results are mainly published on international or national levels, and political guidelines are written at transnational (e.g., European Union), national, or regional levels—these scientific results must be downscaled, interpreted, and adapted to local municipal or community levels. Needless to say, the challenges for implementation are also rooted in a large number of uncertainties, from long time spans to matters of scale, as well as in economic, political, and social interests. From a human perspective, climate change impacts occur rather slowly, while local decision makers are engaged with daily business over much shorter time spans.Among the obstacles to implementing adaptation measures to climate change are three major groups of uncertainties: (a) the uncertainties surrounding the development of our future climate, which include the exact climate sensitivity of anthropogenic greenhouse gas emissions, the reliability of emission scenarios and underlying storylines, and inherent uncertainties in climate models; (b) uncertainties about anthropogenically induced climate change impacts (e.g., long-term sea level changes, changing weather patterns, and extreme events); and (c) uncertainties about the future development of socioeconomic and political structures as well as legislative frameworks.Besides slow changes, such as changing sea levels and vegetation zones, extreme events (natural hazards) are a factor of major importance. Many societies and their socioeconomic systems are not properly adapted to their current climate zones (e.g., intensive agriculture in dry zones) or to extreme events (e.g., housing built in flood-prone areas). Adaptation measures can be successful only by gaining common societal agreement on their necessity and overall benefit. Ideally, climate change adaptation measures are combined with disaster risk reduction measures to enhance resilience on short, medium, and long time scales.The role of uncertainties and time horizons is addressed by developing climate change adaptation measures on community level and in close cooperation with local actors and stakeholders, focusing on strengthening resilience by addressing current and emerging vulnerability patterns. Successful adaptation measures are usually achieved by developing “no-regret” measures, in other words—measures that have at least one function of immediate social and/or economic benefit as well as long-term, future benefits. To identify socially acceptable and financially viable adaptation measures successfully, it is useful to employ participatory tools that give all involved parties and decision makers the possibility to engage in the process of identifying adaptation measures that best fit collective needs.


2021 ◽  
Vol 28 (3) ◽  
pp. 104-119
Author(s):  
Kevan Lamm ◽  
Alexa Lamm ◽  
Kristin Davis ◽  
Alyssa Powell ◽  
Jyothi Bommidi

This study expands on previous research within an international extension context with a particular focus on identifying the capacities associated with effective organizational functioning. A panel composed of 31 experts participated in a three-round Delphi process and identified a list of 38 specific capacities associated with effective organizational functioning related to extension networks. Among the 38 specific items, five primary themes emerged: (1) an extension network should be transparent about its policies, procedures, and organizational intent; (2) knowledge sharing and collaboration within an extension network is critical; (3) general policies and management guidelines should be in place; (4) the development and maintenance of intentional, long-term relationships with various actors in extension, including stakeholders, policy-decision makers, and the private sector is critical; (5) reasonable expectations and guidelines should be established for both extension network officers and network members. The study’s results provide a guide within which extension networks and organizations may evaluate current capacities from both a developmental and strengths perspective.


2020 ◽  
Author(s):  
Marianne T. Lund ◽  
Borgar Aamaas ◽  
Camilla W. Stjern ◽  
Zbigniew Klimont ◽  
Terje K. Berntsen ◽  
...  

Abstract. Mitigation of non-CO2 emissions plays a key role in meeting the Paris Agreement ambitions and Sustainable Development Goals. Implementation of respective policies addressing these targets mainly occur at sectoral and regional levels and designing efficient mitigation strategies therefore relies on detailed knowledge about the mix of emissions from individual sources and their subsequent climate impact. Here we present a comprehensive dataset of near- and long-term global temperature responses to emissions of CO2 and individual short-lived climate forcers (SLCFs) from 7 sectors and 13 regions – for present-day emissions and their continued evolution as projected under the Shared Socioeconomic Pathways. We demonstrate the key role of CO2 in driving both near- and long-term warming, and restate the importance of mitigating methane emissions, from agriculture, waste management and energy productions, as the primary strategy to further limit near-term warming. Due to high current emissions of cooling SLCFs, policies targeting end-of-pipe energy sector emissions may result in net added warming unless accompanied by simultaneous methane and/or CO2 reductions. East Asia, North America and Europe remain the largest contributors to total net warming until 2100, regardless of scenario, while South Asia and Africa south of the Sahara overtakes Europe by the end of the century in SSP3-7.0 and SSP5-8.5. We find that SLCFs will continue to play a role in many regions, particularly those including low- to medium-income countries, under most of the SSPs considered here. Our dataset is made available in an accessible format, aiming also at decision-makers, to support further studies into the implications of policy implementation at the sectoral and regional scales.


2020 ◽  
Vol 64 (1-4) ◽  
pp. 1261-1268
Author(s):  
Shu Otani ◽  
Dang-Trang Nguyen ◽  
Kozo Taguchi

In this study, a portable and disposable paper-based microbial fuel cell (MFC) was fabricated. The MFC was powered by Rhodopseudomonas palustris bacteria (R. palustris). An activated carbon sheet-based anode pre-loaded organic matter (starch) and R. palustris was used. By using starch in the anode, R. palustris-loaded on the anode could be preserved for a long time in dry conditions. The MFC could generate electricity on-demand activated by adding water to the anode. The activated carbon sheet anode was treated by UV-ozone treatment to remove impurities and to improve its hydrophilicity before being loaded with R. palustris. The developed MFC could generate the maximum power density of 0.9 μW/cm2 and could be preserved for long-term usage with little performance degradation (10% after four weeks).


2013 ◽  
pp. 143-155
Author(s):  
A. Klepach ◽  
G. Kuranov

The role of the prominent Soviet economist, academician A. Anchishkin (1933—1987), whose 80th birth anniversary we celebrate this year, in the development of ideas and formation of economic forecasting in the country at the time when the directive planning acted as a leading tool of economic management is explored in the article. Besides, Anchishkin’s special role is noted in developing a comprehensive program of scientific and technical progress, an information basis for working out long-term forecasts of the country’s development, moreover, his contribution to the creation of long-term forecasting methodology and improvement of the statistical basis for economic analysis and economic planning. The authors show that social and economic forecasting in the period after 1991, which has undertaken a number of functions of economic planning, has largely relied on further development of Anchishkin’s ideas, at the same time responding to new challenges for the Russian economy development during its entry into the world economic system.


2005 ◽  
Vol 33 (1) ◽  
pp. 251-254 ◽  
Author(s):  
Éva Lehoczky ◽  
András Kismányoky ◽  
Tamás Kismányoky

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