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  • About
  • The Global ETD Search service is a free service for researchers to find electronic theses and dissertations. This service is provided by the Networked Digital Library of Theses and Dissertations.
    Our metadata is collected from universities around the world. If you manage a university/consortium/country archive and want to be added, details can be found on the NDLTD website.
1

An options-pricing approach to election prediction

Fry, John, Burke, M. 24 April 2020 (has links)
Yes / The link between finance and politics (especially opinion polling) is interesting in both theoretical and empirical terms. Inter alia the election date corresponds to the effective price of an underlying at a known future date. This renders a derivative pricing approach appropriate and, ultimately, to a simplification of the approach suggested by Taleb (2018). Thus, we use an options-pricing approach to predict vote share. Rather than systematic bias in polls forecasting errors appear chiefly due to the mode of extracting election outcomes from the share of the vote. In the 2016 US election polling results put the Republicans ahead in the electoral college from July 2016 onwards. In the 2017 UK general election, though set to be the largest party, a Conservative majority was far from certain.

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