Sunday @6PM, Florida during Hurricane season relies on prediction markets. The safety of floridains and their livelyhood depend on it. If a prediction is wrong, it could mean dire consequences. In 1992, forecasters didn't predict that Hurricane Andrew would hit South Florida. But have you ever thought about how prediction markets work? Private sector vs. Government predictions, and the economics behind it? UM Business School's Dr. David Kelly will be on Sunday to explain.
Dr. David L. Kelly is a professor of economics and the director of economics graduate studies at the University of Miami. He was chair of the economics department from 2005-8 and has formerly held positions at the University of California at Santa Barbara and Carnegie Mellon University. He has published widely on liquidity in financial markets, prediction markets, economic growth and the environment, the economics of climate change, and the design of regulation. His research has been funded by NSF, DOE, and other federal agencies and has been featured on NPR Marketplace, Discovery Channel, Bloomberg, and AP. He is a member of the Association of Environmental and Resource Economists, and the American Economics Association.