The Ombudsman: Value of Expertise for Forecasting Decisions in Conflicts

13 Pages Posted: 1 Jul 2008

See all articles by Kesten C. Green

Kesten C. Green

University of South Australia - UniSA Business School; Ehrenberg-Bass Institute for Marketing Science

J. Scott Armstrong

University of Pennsylvania - Marketing Department

Multiple version iconThere are 3 versions of this paper

Date Written: June, 29 2008

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.

Keywords: applications, bargaining, behavior, competitive strategy, decision making, decision analysis

Suggested Citation

Green, Kesten C. and Armstrong, J. Scott, The Ombudsman: Value of Expertise for Forecasting Decisions in Conflicts (June, 29 2008). Available at SSRN: https://ssrn.com/abstract=1153143 or http://dx.doi.org/10.2139/ssrn.1153143

Kesten C. Green

University of South Australia - UniSA Business School ( email )

GPO Box 2471
Adelaide, SA 5001
Australia
+61 8 83012 9097 (Phone)

HOME PAGE: http://people.unisa.edu.au/Kesten.Green

Ehrenberg-Bass Institute for Marketing Science ( email )

Australia

HOME PAGE: http://www.marketingscience.info/people/KestenGreen.html

J. Scott Armstrong (Contact Author)

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States
215-898-5087 (Phone)
215-898-2534 (Fax)

HOME PAGE: http://marketing.wharton.upenn.edu/people/faculty/armstrong.cfm

Register to save articles to
your library

Register

Paper statistics

Downloads
65
Abstract Views
724
rank
172,407
PlumX Metrics