
#4 – Doyne Farmer: Chaos Theory & Complexity Economics
Scaling Theory
Robust Prediction Based on Data Analysis
The speaker's prediction, based on data analysis over 14 years, showed a strong linear scaling relationship between traffic level and rate of price improvement in the world. While the observation was at an industry level due to data limitations, the prediction was nearly perfect and robust, suggesting potential for even better accuracy at a granular level.
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