Wednesday, December 15, 2010

Predicting History is Easy: Model Politics as a Game

Prof. Bruce Bueno de Mesquita wants that the world knows he can do the unthinkable. With >90% accuracy he can predict the future. This is what his recent popular science book "The Predictioneers Game" claims. Others strongly contradict his claim.
Because his model is not shown in the popular book, I asked him to point me out the right sources. He kindly answered: 
The ISA paper is scheduled for publication in the journal Conflict Management and Peace Science (CMPS). [...] you might want to read European Community Decision Making, edited by Frans Stokman and me and published by Yale University Press or my short boo[k], Predicting Politics (Ohio State University Press) but these are on the old model. The math and structure of the new model is set out in the CMPS paper that is due out within the next few months.
Let me play a game:
What would it mean if his astonishing predictive power turns out to be true? would it mean we know the state of the world in 20 years? would it mean that your fate is given? would it mean that we will all use his method in business and private life in the future? 
what would it mean if his claim is wrong. he wants to put his academic renown at stake to be invited to talkshows? he don't know he is wrong and will be derided and forgotten? Or is he playing an aggressive game to promote his...
[...] company, Mesquita & Roundell,[1] that specializes in making political and foreign-policy forecasts using an unpublished and proprietary computer model based on game theory and rational choice theory.
The future will tell, because I will read his paper when its published.

2 comments:

manfred karrer said...

If we would know the future we would influence it and change it, so the resukt would be that the prediction will not be correct naymore... but at least that would be a good excuse why the prediction was wrong ;-)

Unknown said...

You are right, since Mesquita uses Game Theory as a weapon of choice this translates to: the strategic dominance of politics changes. To follow your argument: even though we will not predict correctly with the new prediction technology, not using it would be absurd. because we know that other would. But Game Theory goes further: we know, that he knows, that we know, that he uses Mesquita Predictions. It seems that in the end the opponent has the choice of (1) using Mesquita because it works (2) not using Mesquita because, he knows that you know... It seems to me then, that Mesquita Prediction eliminates its usefulness, as you agree. But: this is the perfect market theory. And the flaw of this theory is simply that the market isn't prefect, hence Hifi trading etc. In the end, there would be enough occasions to benefit from Mesquita Predictions, if they work.