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The Ombudsman: Value of Expertise for Forecasting Decisions in Conflicts

Author

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  • Kesten C. Green

    (Department of Econometrics and Business Statistics, Monash University, Victoria 3800, Australia)

  • J. Scott Armstrong

    (The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104)

Abstract

In important conflicts such as wars and labor-management disputes, people typically rely on the judgment of experts to predict the decisions that will be made. We compared the accuracy of 106 forecasts by experts and 169 forecasts by novices about eight real conflicts. The forecasts of experts who used their unaided judgment were little better than those of novices. Moreover, neither group’s forecasts were much more accurate than simply guessing. The forecasts of experienced experts were no more accurate than the forecasts of those with less experience. The experts were nevertheless confident in the accuracy of their forecasts. Speculating that consideration of the relative frequency of decisions across similar conflicts might improve accuracy, we obtained 89 sets of frequencies from novices instructed to assume there were 100 similar situations. Forecasts based on the frequencies were no more accurate than 96 forecasts from novices asked to pick the single most likely decision. We conclude that expert judgment should not be used for predicting decisions that people will make in conflicts. When decision makers ask experts for their opinions, they are likely to overlook other, more useful, approaches.

Suggested Citation

  • Kesten C. Green & J. Scott Armstrong, 2007. "The Ombudsman: Value of Expertise for Forecasting Decisions in Conflicts," Interfaces, INFORMS, vol. 37(3), pages 287-299, June.
  • Handle: RePEc:inm:orinte:v:37:y:2007:i:3:p:287-299
    DOI: 10.1287/inte.1060.0262
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    References listed on IDEAS

    as
    1. Armstrong, J. Scott, 2007. "Significance tests harm progress in forecasting," International Journal of Forecasting, Elsevier, vol. 23(2), pages 321-327.
    2. Green, Kesten C., 2002. "Forecasting decisions in conflict situations: a comparison of game theory, role-playing, and unaided judgement," International Journal of Forecasting, Elsevier, vol. 18(3), pages 321-344.
    3. Green, Kesten C. & Armstrong, J. Scott, 2007. "Structured analogies for forecasting," International Journal of Forecasting, Elsevier, vol. 23(3), pages 365-376.
    4. Scott Armstrong, J. & Brodie, Roderick J. & McIntyre, Shelby H., 1987. "Forecasting methods for marketing: Review of empirical research," International Journal of Forecasting, Elsevier, vol. 3(3-4), pages 355-376.
    5. Daniel Kahneman & Dan Lovallo, 1993. "Timid Choices and Bold Forecasts: A Cognitive Perspective on Risk Taking," Management Science, INFORMS, vol. 39(1), pages 17-31, January.
    6. Green, Kesten C., 2005. "Game theory, simulated interaction, and unaided judgement for forecasting decisions in conflicts: Further evidence," International Journal of Forecasting, Elsevier, vol. 21(3), pages 463-472.
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    Cited by:

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    2. Mauksch, Stefanie & von der Gracht, Heiko A. & Gordon, Theodore J., 2020. "Who is an expert for foresight? A review of identification methods," Technological Forecasting and Social Change, Elsevier, vol. 154(C).

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