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Contradictory predictions

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arxiv 1912.00126 v1 pith:V47F53MD submitted 2019-11-30 math.PR

Contradictory predictions

classification math.PR
keywords differentprobabilityexpertspredictionssharpaccessaggregatedalgorithm
verification ladder T0 review T1 audit T2 compute T3 formal T4 reserved
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We prove the sharp bound for the probability that two experts who have access to different information, represented by different $\sigma$-fields, will give radically different estimates of the probability of an event. This is relevant when one combines predictions from various experts in a common probability space to obtain an aggregated forecast. Our proof is constructive in the sense that, not only the sharp bounds are proved, but also the optimizer is constructed via an explicit algorithm.

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    econ.TH 2021-12 unverdicted novelty 7.0

    Defines private private signals and characterizes the optimal ones that maximize state informativeness subject to no cross-signal information leakage.