July 21, 2005 | Chicago Daily HeraldThree University of Miami professors are setting up a futures market that will essentially enable people to bet on where a hurricane will strike. The professors -- two of them economists, the third a meteorologist -- are hoping the collective wisdom of the marketplace will prove more accurate than government forecasters and help homeowners decide with more certainty whether to evacuate. The project is called the Miami Hurricane Event Market, or MAHEM. Using market techniques to make predictions is not new. The UNIVERSITY OF IOWA has used futures markets to predict winners of presidential elections and forecast where the flu might strike. Futures markets have also predicted Oscar winners and box office receipts. Versions of this Associated Press article also appeared July 21 on the websites of the LINCOLN (Neb.) JOURNAL STAR and KNOXVILLE (Tenn.) NEWS SENTINEL.
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