Prediction Markets to Forecast Electricity Demand
AbstractA preference is invariant with respect to a transformation tau if its ranking of acts is unaffected by a reshuffling of the states under tau. We show that any invariant preference must be parametric: there is a unique sufficient set of parameters such that the preference ranks acts according to their expected utility given the parameters. This property holds for all non-trivial preferences, provided only that they are reflexive, transitive, monotone, continuous and mixture linear.
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Bibliographic InfoPaper provided by Northwestern University, Center for Mathematical Studies in Economics and Management Science in its series Discussion Papers with number 1529.
Date of creation: 01 Oct 2010
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-15 (All new papers)
- NEP-ENE-2011-08-15 (Energy Economics)
- NEP-FOR-2011-08-15 (Forecasting)
- NEP-IND-2011-08-15 (Industrial Organization)
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