As Iran and the international community try to negotiate an agreement on the Islamic republic's nuclear programme, analysts are busy examining speeches and news reports and scouring documents in their efforts to predict the outcome.
But according to one New York University political scientist, it can be predicted by simple mathematics.
A numerical computer model developed by Bruce Bueno de Mesquita translates data about a given issue into a number on a scale, which gauges the likelihood of a particular outcome.
On the issue of the Iranian nuclear programme, for instance, the model put the predicted equilibrium outcome at 118 out of 200. That translates to: Iran will get to the point where it has developed weapons grade fuel, but will stop there. The point of that, Prof de Mesquita said, was "to prove that they can".
The model may sound quirky, but 90 per cent of the predictions it has made over the past 25 years - from the succession of Ayatollah Ali Khamenei as the supreme leader of Iran to the implementation of the Good Friday Agreement in Northern Ireland - have been correct.
That accuracy rate has earned Prof de Mesquita's model renown and propelled it from the pages of academic journals to the desks of Central Intelligence Agency and defence department officials.
That is not to say US intelligence and decision-making is based on a mathematical model, just that Prof de Mesquita's model has been considerably more accurate than the agency's own analysts, according to a CIA study. "Generally, [the CIA] go with whatever result they are more comfortable with, but my results help inform debate to improve the prospect that they become comfortable with something they initially doubted," Prof de Mesquita, who is also a senior fellow at the Hoover Institution at Stanford University, said in an e-mail.
"That is what I see as the main role of modelling in informing policy decisions."
Prof de Mesquita's academic focus is game theory, which uses mathematics to show how people negotiate with one another. His model is something of an extension of this.
When using the model to make a prediction on a given issue, Prof de Mesquita collates information from news and intelligence reports and the opinions of experts in the given area, who put a numerical value on four variables affecting the issue: who has a stake in the outcome of an issue; what the stakeholders publicly say they want regarding this issue (or, what is their "strategically chosen decision"); how important the issue is to the individuals involved, and how much clout the individuals can bring to bear on the issue.
The model takes the numerical values from each of the variables, makes them into a pattern and charts them, producing a figure on a scale, usually of zero to 200.
Essentially the model predicts how individuals will come together on an issue or not. The more individuals involved the more possible alliances there are. With 40 individuals involved, for instance, there are 1,560 possible alliances. Because the model is mathematical, and not based on human speculation, it factors in all the possible alliances that people may not take into account. It also excludes such factors as culture and history, which analysts will often take into account when trying to predict something. The conclusion, according the model, is that individuals everywhere act in their self-interest.
Critics such as John Mearsheimer, a professor of international relations at the University of Chicago, say mathematising politics is a dangerous precedent that threatens to sideline traditional political scientists.
However, the accuracy rate of the model is difficult to dispute. Prof de Mesquita has a high level of confidence in the predictions of his model, though it varies from case to case.
"It depends on how confident I am in the information the experts have - If the data accurately reflect a general understanding of the current situation, then whatever changes take place are driven by the model's logic, in which I have a fair amount of confidence.
"The track record suggests that with good data, the model is accurate about 90 per cent of the time, so that is my degree of confidence."
Aside from his own academic work and his consultancy with the CIA, Prof de Mesquita does freelance forecasting for various clients that request his services, including a number of companies from the Fortune 500 list of top US companies.
He is currently working on a prediction for healthcare reform in the United States, and in the pipeline is an update on the Iranian nuclear programme issue and the likelihood of Pakistan's success against the Taliban.
He also just did a prediction for The Wall Street Journal on the possibility of a deal between Vivendi and Comcast regarding Vivendi's 20-per-cent stake in NBC-Universal by December 10. Prof de Mesquita said the deal will go through.
Shareholders were possibly taking note.
jspollen@thenational.ae
COMPANY%20PROFILE
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Rocketman
Director: Dexter Fletcher
Starring: Taron Egerton, Richard Madden, Jamie Bell
Rating: 3 out of 5 stars
More from Rashmee Roshan Lall
THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
Global state-owned investor ranking by size
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What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
Results
5pm: Maiden (PA) Dh80,000 (Turf) 2,200m, Winner: Zalman, Pat Cosgrave (jockey), Helal Al Alawi (trainer)
5.30pm: Maiden (PA) Dh80,000 (T) 1,600m, Winner: Hisham Al Khalediah II, Fernando Jara, Mohamed Daggash.
6pm: Handicap (PA) Dh85,000 (T) 1,600m, Winner: Qader, Adrie de Vries, Jean de Roualle
6.30pm: Abu Dhabi Championship Listed (PA) Dh180,000 (T) 1,600m, Winner: Mujeeb, Fabrice Veron, Eric Lemartinel
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,600m, Winner: AF Majalis, Tadhg O’Shea, Ernst Oertel
7.30pm: Handicap (TB) Dh90,000 (T) 1,600m, Winner: Shanaghai City, Fabrice Veron, Rashed Bouresly
8pm: Handicap (TB) Dh100,000 (T) 1,400m, Winner: Nayslayer, Bernardo Pinheiro, Jaber Ramadhan
The specs
Engine: 2.0-litre 4cyl turbo
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Company%20Profile
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Tips from the expert
Dobromir Radichkov, chief data officer at dubizzle and Bayut, offers a few tips for UAE residents looking to earn some cash from pre-loved items.
- Sellers should focus on providing high-quality used goods at attractive prices to buyers.
- It’s important to use clear and appealing photos, with catchy titles and detailed descriptions to capture the attention of prospective buyers.
- Try to advertise a realistic price to attract buyers looking for good deals, especially in the current environment where consumers are significantly more price-sensitive.
- Be creative and look around your home for valuable items that you no longer need but might be useful to others.
How to come clean about financial infidelity
- Be honest and transparent: It is always better to own up than be found out. Tell your partner everything they want to know. Show remorse. Inform them of the extent of the situation so they know what they are dealing with.
- Work on yourself: Be honest with yourself and your partner and figure out why you did it. Don’t be ashamed to ask for professional help.
- Give it time: Like any breach of trust, it requires time to rebuild. So be consistent, communicate often and be patient with your partner and yourself.
- Discuss your financial situation regularly: Ensure your spouse is involved in financial matters and decisions. Your ability to consistently follow through with what you say you are going to do when it comes to money can make all the difference in your partner’s willingness to trust you again.
- Work on a plan to resolve the problem together: If there is a lot of debt, for example, create a budget and financial plan together and ensure your partner is fully informed, involved and supported.
Carol Glynn, founder of Conscious Finance Coaching
The biog
Siblings: five brothers and one sister
Education: Bachelors in Political Science at the University of Minnesota
Interests: Swimming, tennis and the gym
Favourite place: UAE
Favourite packet food on the trip: pasta primavera
What he did to pass the time during the trip: listen to audio books
Ultra processed foods
- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns
- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;
- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces
- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,
- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.
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