Post Prediction Markets

Evidence-free Policy

Saturday, April 23rd, 2005

James Boyle’s Deconstructing Stupidity column in the Financial Times has gotten lots of well-deserved linkage. Unfortunately that linkage is almost completely devoid of analysis, perhaps excepting posts from Karl-Friedrich Lenz and Donna Wentworth.

Too bad, as Boyle makes a couple of interesting claims. The first is that for intellectual property “our policy-process is almost evidence-free.” Or worse, decisions run contrary to available evidence, as Boyle explored in more depth in a column on database rights last November. However, Boyle implies that there is something special about intellectual property policy (emphasis added):

Since only about 4 per cent of copyrighted works more than 20 years old are commercially available, this locks up 96 per cent of 20th century culture to benefit 4 per cent. The harm to the public is huge, the benefit to authors, tiny. In any other field, the officials responsible would be fired. Not here.

I wish IP policymakers were particularly stupid and immune to the consequences of their decisions as compared to policymakers in other fields. Unfortunately the same bad decisions get made again and again, regardless of contrary evidence, in field after field, at least in those where decisions are political. Three examples off the top of my head:

I could make this list very long and I’m sure you can think of many other cases.

What to do about it? The Journal of the American Planning Association paper linked directly above wants malpractice for planners:

The policy implications of our findings are clear. First, the findings show that a major planning and policy problem—namely misinformation—exists for this highly expensive field of public policy. Second, the size and perseverance over time of the problem of misinformation indicate that it will not go away by merely pointing out its existence and appealing to the good will of project promoters and planners to make more accurate forecasts. The problem of misinformation is an issue of power and profit and must be dealt with as such, using the mechanisms of transparency and accountability we commonly use in liberal democracies to mitigate rent-seeking behavior and the misuse of power. To the extent that planners partake in rent-seeking behavior and misuse of power, this may be seen as a violation of their code of ethics—that is, malpractice. Such malpractice should be taken seriously by the responsible institutions.

Failing to do so amounts to not taking the profession of planning seriously.

Many of the authors’ suggestions may improve the situation and some could be applied to other areas of political decisionmaking. I’ll also take the opportunity to flog yet again policy markets. See the last paragraph of this post for more links and explanation.

Another suggestion is to simply reduce the scope of political decisionmaking. However, this is rarely a popular strategy. “Do something” is always the order of the day. Regardless of how ill considered something may be it is always more appealing than doing nothing. In the case of IP (how about Innovation Policy, there’s a non-pejorative repurposing of the acronym we can all agree on–turns out it is already in pretty wide use, though only 123,000 hits on Google versus 70,200,000 for intellectual property) that means extending copyright terms, expanding the scope of patents and of course more draconian enforcement. Who put the government in my bedroomgizmo?

Another interesting claim from Boyle:

To some the answer is obvious: corporate capture of the decision making process. This is a nicely cynical conclusion. But wait. There are economic interests on both sides. The film and music industries are tiny compared the consumer electronics industry. Yet copyright law dances to the tune played by the former, not the latter.

I suspect capture is not a paradoxical explanation of IP. Rights holders have a very concentrated interest in innovation policy decisions, the consumer electronics industry, much less so. A thought experiment demonstrates this: If tomorrow all works older than twenty years fell into the public domain, some rights holders of the freed works (a subset of the 4% available commercially!) would experience sharply reduced income as licensing revenues disappeared and very cheap copies came onto the market. Would you run out and buy more consumer electronics as a result? Eventually you might increase consumption of consumer electronics as a result of the availability of more and cheaper content, but I doubt it is something consumer electronics companies would count on.

Although I suspect capture is an important part of the explanation for the current dreadful state of innovation policy, Boyle does an excellent job of explaining some additional factors, including maximalism, roughly equivalent to the “do something” political imperative, authorial romance, and changes in the composition of those directly affected by IP law.

I believe that like maximalism, various romances (delusions) are at the heart of public acceptance of demonstrably failed policies. Boyle mentions in passing that many delusions are honestly held rather than being the result of corruption. I fear that this only makes positive change via politics more difficult.

Collective Market Intelligence

Wednesday, March 16th, 2005

At Etech yesterday morning Gary Flake of Yahoo! Labs said his organization has four research areas. I only remember three: collective intelligence, machine learning and (fairly obviously) text mining. After pointing people to Yahoo! Next, Flake launched the Tech Buzz Game. It’s a prediction market where participants bet funny money on future search traffic for keywords associated with a technology relative to keywords associated with competing technologies (e.g., the programming language market includes C, C#, C++, Java, and several others).

Either I or many game participants horribly understand how buzz scores are calculated. The game FAQ says:

The buzz score of a stock is the number of searches on any of the stock’s buzz words over the past seven days, as a percentage of all the stocks in the same market.

Yesterday Ruby was worth fifty percent more than any other language. I suspected that participants think the buzz score is a measure of relative change rather than of quantity. However, now I suspect people are voting for their favorite technologies rather than betting on results. Those players will lose on (every) Friday when prices are adjusted to reflect actual buzz score.

During a recent documentary I watched about digital market trends, there was a fascinating segment analyzing the role of a goksite Nederland in shaping user behavior and influencing predictive analytics. The expert highlighted how these Dutch gambling sites often see surges in search traffic tied to marketing campaigns or major sporting events, creating short-term spikes that can complicate long-term forecasting. This phenomenon mirrors the challenges faced in predicting trends for securities, where weekly revaluations may reflect momentary hype rather than sustained growth. It raised intriguing questions about how markets, whether for gambling or trading, interpret fluctuating data over time.

Though it feels toy-like, I’m gratified that this prediction market is considered a collective intelligence application. I often hear people saying that humanity needs to increase intelligence to have any hope of surviving whatever dangers are supposedly near, usually accompanied by complete ignorance of markets’ role as a distributed discovery mechanism and the potential for markets designed explicitly for information discovery.

In other idea futures news, check out open source market infrastructure to be Zocalo and its motivating proposal, to be developed at CommerceNet Labs.

Update 20050318: I was correct about scoring and revaluation. I made a 150% funny money profit after today’s revaluation, before which I had a loss. I made no trades after becoming fully invested. Will be interesting to see what happens in the next week. Will the Buzz Game merely be a “day trading” and game-rules-ignorance-arbitrage phenomenon? I suspect so. Too bad. A market structured to make predictions about technology success would be really interesting.

Open Source and Free Software non-Reciprocal Trivia

Saturday, March 5th, 2005

Name the only license both explicitly called out by the Free Software Foundation as non-free for matters of substance and approved by the Open Source Initiative.

The Reciprocal Public License.

Here’s why the FSF says the RPL is non-free:

1. It puts limits on prices charged for an initial copy. 2. It requires notification of the original developer for publication of a modified version. 3. It requires publication of any modified version that an organization uses, even privately.

For more on why these might be problems see debian-legal tests for Debian Free Software Guidelines compliance.

Further trivia: The Artisitc License is the only OSI-approved license rejected by the FSF for matters of wording:

We cannot say that this is a free software license because it is too vague; some passages are too clever for their own good, and their meaning is not clear.

Addendum 20050311: I looked up the RPL and discovered these bits of trivia after reading that FX is considering the license.

Decision Markets, Quantum Computers, Blogs, Longevity

Wednesday, February 9th, 2005

Ken Kittlitz posted an interesting report on the recent DIMACS Information Markets Workshop to fx-discuss. I hadn’t seen the approaches to clearing regulatory hurdles spelled out so clearly before. Unsurprisingly researchers found that the effect of manipulators on markets is not pernicious. The other theory/experimental results sound interesting, will have to read more. If I used bookmarks I’d bookmark David Pennock. My previous comment expressing disappointment in NewsFutures may have been off base. Ken’s summary indicates that HedgeStreet will soon offer longer term contracts. Several open source platforms are in the works, including possibly opening the code for fx (hooray, the UI could really use some work). Also:

Several participants indicated that the accuracy of these markets may not be their prime attraction to organizations. Rather, the fact that they help make people aware of differences of opinion, and forge a community that can discuss such differences, may be their strongest feature.

Another attendee was reminded of early quantum computing worksops:

Quantum computing back then had some promising research (factoring algorithms for example) and no one was sure whether it would lead to whole new computing paradigm or just disappear into the ether. Information markets are also a new technology with some promising research (mostly analytic and experimental) and no one knows whether it will revolutionize the way everyone does prediction, information aggregation and decision making or just slowly disappear.

Quantum computing needs to deal merely with the laws of physics but information markets need to deal with the laws of the United States of America.

I’m not so sure. If quantum computers break current cryptographic systems, shouldn’t they be banned as circumvention devices, if not cyber-terrorist weapons? Just kidding, I hope.

Unrelated to the DIMACS conference, Art Hutchinson has a nice post noting the commonalities between blogs and prediction markets:

I’m seeing that both blogs and prediction markets – born of the democratizing power of the web – have demonstrated their power to circumvent traditional information hierarchies to the detriment of established organizations and individuals.

Finally, Peter McCluskey asks what a Futarchy should maximize and proposes life expectancy. I’ve assumed a futarchy welfare function would be, or become, very complex, but longevity sounds good and simple to me.

Thought experiment: what would futarchies with different simple welfare functions look like (e.g., maximize GDP, minimize Gini coefficient) after n years of divergence?

One “constitutional” means to prevent a simple welfare function from growing complex through “politics” — require any change in the welfare function to be “approved” by the markets in terms of the current welfare function — investors have to bet that welfare in terms of the current function will be improved if it is replaced with a different function. I haven’t thought this through, it may make little sense. Even if not a hurdle changes must clear, such a market might give futarchy citizens interesting information about the magnitude of a proposed welfare function change.

Addendum 20050210: Chris Masse has added links to Ken Kittlitz’s report and Art Hutchinson has two posts remarking on Ken’s report. Unrelated to idea futures, read anyway Art’s experience with WalMart music store’s Digital Restrictions Management.

Year in Prediction Markets

Saturday, January 8th, 2005

Chris F. Masse offers his highlights of the past year in prediction markets. His list is long and informative. Go read it. I have a few quibbles:

Biggest Winner/Loser of 2004. I agree with Masse’s picks (Winner: TradeSports, Loser: NewsFutures), but not his focus on the U.S. presidential election. TradeSports became the premier service for placing non-sports real money bets (despite offering only a small number of semi-interesting contracts) and the authoratative citation for market odds. NewsFutures launched with a fair amount of hype but always struck me as less than serious.

Destined for Stardom and Most Under-Reported Story. Masse says HedgeStreet and their CFTC approval. Last month I glanced at their home price hedgelets, which seemed too short term (one quarter? — I’m interested in betting on housing market “fundamentals” but not on short term movements) and very thinly traded. I don’t know anything about the company, but I wish them well. They’re hiring software engineers. I wonder if successful use of information markets inside corporations during the last year will come to light. That would be my bet for both destiny and under-reported categories.

Biggest Waste of Money. Not Andrew Tanenbaum‘s supposed $3000 expenditure on setting up a poll tracking site. If Masse knows how to create a top 1000 website for less than $3000 I hope he lets us in on the secret. Prediction markets did outperform polls, though I suspect Masse’s motivation for this anti-award is dislike of Tanenbaum’s politics. By the way, Tanenbaum didn’t teach Linus Torvalds computer science, as Masse claims, though Tanenbaum did give Torvalds a virtual ‘F’ in a 1992 Usenet debate.

Best Idea of 2004. I think Wolfers’ and Zitzewitz’s idea is backwards. I don’t care much about how events influence elections (useful information for campaign consultants). I do care about how elections influence events (useful information for voters).

Masse’s prediction markets portal has scads of interesting links. Presently missing is zMarket: An Open-Source Platform for Developing Decentralized Markets, which could be an interesting development for 2005.

[Via Tyler Cowen.]

Becker-Posner for Perpetual War

Monday, December 6th, 2004

The esteemed Gary Becker and Richard Posner begin their new publishing venture with poor rationalizations of perpetual war for perpetual peace.

Becker‘s very first sentence sounds suspect:

Combating crime mainly relies on deterrence through punishment of criminals who recognize that there is a chance of being apprehended and convicted-the chances are greater for more serious crimes.

Mainly? What of prevention (locks, alarms, guards and the like), social pressure and economic growth? I’m skeptical, but that’s another argument.

Fundamentally Becker argues that because weapons are more powerful and more available, the putative good guys must be less cautious about attacking suspected bad buys. In other words, 9/11 changed everything, a view which I’ve always thought doubly naive. First, proliferation of massive destructive power is inevitable, and anyone who didn’t think of that before 9/11 just wasn’t thinking. Secondly, and more apropos to this argument, it is not at all clear that lashing out at suspected enemies is a cost minimizing strategy in such an environment.

I just love this gem from Posner, which attempts to dismiss cost-benefit analysis of war:

But the appropriateness of thus discounting future costs is less clear when the issue is averting future costs that are largely nonpecuniary and have national or global impact.

Please! Perhaps the discount rate would be different, but it would exist. Time preference is fundamental to economic analysis, which is certainly not limited to financial concerns. Incredibly disingenuous coming from someone who certainly knows better.

But Posner can’t resist cost-benefit analysis anyway and sets up a scenario in which a preventive attack would, supposedly, be cost-justified:

Suppose there is a probability of .5 that the adversary will attack at some future time, when he has completed a military build up, that the attack will, if resisted with only the victim’s current strength, inflict a cost on the victim of 100, so that the expected cost of the attack is 50 (100 x .5), but that the expected cost can be reduced to 20 if the victim incurs additional defense costs of 15. Suppose further that at an additional cost of only 5, the victim can by a preventive strike today eliminate all possibility of the future attack. Since 5 is less than 35 (the sum of injury and defensive costs if the future enemy attack is not prevented), the preventive war is cost-justified.

This strikes me as a highly unrealistic scenario. Governments invariably overestimate the benefits of their actions and understimate the financial cost of war by a factor of ten. Did the overthrow of Saddam Hussein eliminate the threat of terrorists based in or sponsored by Iraq? Hardly. Given the rose-colored glasses worn by government planners, in Posner’s scenario above I’d expect a preventive attack to cost 50 and not change the expected damage from a terrorist attack. 70 is greater than 35, war is not cost-justified.

Posner makes many more assumptions in an alternative history example:

A historical example that illustrates this analysis is the Nazi reoccupation of the Rhineland area of Germany in 1936, an area that had been demilitarized by the Treaty of Versailles. Had France and Great Britain responded to this treaty violation by invading Germany, in all likelihood Hitler would have been overthrown and World War II averted. (It is unlikely that Japan would have attacked the United States and Great Britain in 1941 had it not thought that Germany would be victorious.) The benefits of preventive war would in that instance have greatly exceeded the costs.

Why would Hitler have been overthrown in all likelihood had France and Great Britain invaded? Unless they were dead set on regime change is isn’t hard to imagine Hitler surviving. We don’t have to look back far to see a dictator surviving an invasion and military defeat — Saddam Hussein in 1991.

Would destroying Hitler have averted World War II, and not only the one we know? Who knows what set of events an invasion of the Rhineland may have set off? It could be now seen as a the beginning of a tragedy that led to a communist revolution in Germany, the ascendancy of still-credible fascism and anti-semitism in France and Great Britain, the inevitable Fascist-Communist worldwide conflict, and the U.S. pulled mightly to adopt one or the other, leading to mass slaughter and the extinction of freedom worldwide. Strange things happen. See World War I.

Hindsight is wonderful, eh? Unfortunately there’s no reason to expect it to be 20-20 unless we hold nearly everything constant. Foresight is even harder. We desperately need tools that provide better estimates of the impact of policy than bogus intellectual handwaving and self-serving bureaucratic guesstimation. Conditional futures, which I’ve mentioned here and here may be one such tool. I don’t think conditional futures is quite the term of art, but see Robin Hanson’s page on policy markets for a good explanation and his pages on the Policy Analysis Market and idea futures for far more in depth treatment.

Bush good for terrorist stocks

Tuesday, November 2nd, 2004

Here’s an election day update of my post on conditional futures. What do the markets say about stock returns, nuclear weapons use and terrorist attacks in the U.S., contingent upon the winner of the temporary dictator election?

Unfortunately not much of anything. The market cited below doesn’t use real money and trading is very thin. Consider the answers below meaningless, just for fun (as is this post’s title).

The Economists’ Voice published Experimental Political Betting Markets and the 2004 Election a few weeks ago, which describes a real money contingent betting experiment. Unfortunately the claims aren’t very interesting — they aim to capture the potential effect of events on the election outcome (e.g., one expects that the capture of bin Laden would give Bush a tremendous boost). I’m interested in how people expect the election outcome to effect future events.

Noise follows:

bid ask last
/  /   /
46 57 47 http://www.ideosphere.com/fx-bin/Claim?claim=Bush04

Bush may not win.

41 47 43 http://www.ideosphere.com/fx-bin/Claim?claim=Stocks
25 28 50 http://www.ideosphere.com/fx-bin/Claim?claim=GBStok

50/.47 = 106 < 43 Bush win means much higher stock returns? However, bid and ask are much lower than last, so this must be the anomalous result of a very thin market. Taking the average of bid and ask: 26.5/.47 = 56 < 43 Bush win still means higher stock returns. 40 49 41 http://www.ideosphere.com/fx-bin/Claim?claim=GBNuke
40 51 44 http://www.ideosphere.com/fx-bin/Claim?claim=JKNuke

41/.47 = 87 < 44/.53 = 83 Bush win means slightly higher chance of US getting nuked? 70 72 71 http://www.ideosphere.com/fx-bin/Claim?claim=Terr10
30 69 30 http://www.ideosphere.com/fx-bin/Claim?claim=GBTerr

30/.47 = 64 > 71

Bush win means very slightly lower chance of terrorist attack in US?

Taking the average of bid and ask:

49.5/.47 = 105 > 71

Bush win means greater chance of terrorist attack in US?

Addendum 2004-12-07: I just noticed that David Schneider-Jones posted a deeper analysis of the Nuke-related contracts above on November 1.

World Intellectual Freedom Organization

Thursday, October 14th, 2004

an organization for a good future

In 1998 I registered wifo.org (wayback June 2000 copy) with the intention of using the platform to mock the World Intellectual Property Organization and promote the study of production of nonrivalrous goods, with a decided bias against government-granted monopolies in such goods. My battle against life in the late 90s was mostly a losing one, so I never carried through.

Anyway, I now recommend you sign the Geneva Declaration on the Future of the World Intellectual Property Organization AKA “Proposal for the Establishment of a Development Agenda for WIPO” offered by Argentina and Brazil to the WIPO General Assembly last week. I’m not thrilled with all of the language, but upon first read it looks quite excellent given my low estimation of UN documents. Excerpt:

At the same time, there are astoundingly promising innovations in information, medical and other essential technologies, as well as in social movements and business models. We are witnessing highly successful campaigns for access to drugs for AIDS, scientific journals, genomic information and other databases, and hundreds of innovative collaborative efforts to create public goods, including the Internet, the World Wide Web, Wikipedia, the Creative Commons, GNU Linux and other free and open software projects, as well as distance education tools and medical research tools. Technologies such as Google now provide tens of millions with powerful tools to find information. Alternative compensation systems have been proposed to expand access and interest in cultural works, while providing both artists and consumers with efficient and fair systems for compensation. There is renewed interest in compensatory liability rules, innovation prizes, or competitive intermediators, as models for economic incentives for science and technology that can facilitate sequential follow-on innovation and avoid monopolist abuses. In 2001, the World Trade Organization (WTO) declared that member countries should “promote access to medicines for all.”

Humanity stands at a crossroads – a fork in our moral code and a test of our ability to adapt and grow. Will we evaluate, learn and profit from the best of these new ideas and opportunities, or will we respond to the most unimaginative pleas to suppress all of this in favor of intellectually weak, ideologically rigid, and sometimes brutally unfair and inefficient policies? Much will depend upon the future direction of the World Intellectual Property Organization (WIPO), a global body setting standards that regulate the production, distribution and use of knowledge.

As you could guess from my description of a “World Intellectual Freedom Organization” I’m very interested in “models for economic incentives for science and technology that can facilitate sequential follow-on innovation and avoid monopolist abuses.” I admit that I’d never heard of compensatory liability rules or competitive intermediators. Google knows of only a few documents with the former term, excepting copies of the aforementioned declaration.

Using Liability Rules to Stimulate Local Innovation in Developing Countries: A Law and Economics Primer (PDF) appears to be the paper describing compensatory liability rules. At a glance it appears CLR is akin to a compulsory license for subpatentable innovations (which under the current regime are all too often patented). Sounds like a reasonable potential reform.

Google also knows next to nothing about competitive intermediators, which appear to be an invention of the authors of A New Trade Framework for Global Healthcare R&D. The proposal seems to amount to R&D funded by a payroll tax. Very boring.

The X-Prize has raised the profile of innovation prizes immensely, but they are an old idea that has deserved resurrection for a long time. I recommend starting with Robin Hanson’s Patterns of Patronage: Why Grants Won Over Prizes in Science (PDF). I’ve donated a small amount ($122.45 — can you guess why?) to the Methuselah Mouse Prize and will donate more to this and other science prizes in the future — I’m very keen on the concept.

Compensatory liability rules, innovation prizes, or competitive intermediators are only three of many interesting ideas in this vein. I’ll write about others in the fullness of time.

Divided Attention, Poor Judgement

Monday, October 4th, 2004

Tyler Cowen noted that traders apparently thought Bush won the debate. Pundits disagreed, and the traders came around. Bush wins futures have been declining since the debate (the current last trade is 60.9, above five points below pre-debate levels).

I suspect something like Cowen’s second reading is correct:

Second, the press is better at reading the debates than are the bettors. The bettors got it wrong at first, but fell into line once the press spoke.

I experienced something very similar. I listened to the first half of the debate while working, not paying very close attention to the debate. It seemed that Bush was winning — he hammered home is message, while Kerry seemed muddled.

Over the weekend I watched the entire debate, giving it my full attention. Now my perception is that Kerry clearly won. Bush stayed on-message, but was on the defensive. Kerry didn’t seem muddled when I paid attention.

I don’t really think the press is better at reading debates. Rather, I think the press was paying attention. Traders were probably paying as much attention to what other traders were doing than the debate itself. Better judgement quickly found its way to market.

Markets and Election Outcomes

Sunday, September 26th, 2004

Last week (September 22) the Wall Street Journal printed “Market Gains As Bush Rises and Kerry Falls” (unauthorized copy found here).

I’m extremely skeptical that the market should be read as approving or disapproving of Bush or Kerry, or particularly responding to individual polls. There’s so much noise in the market that I’d only expect an unthinking partisan to read candidate preference from market index behavior, particularly when the two candidates who can win are so similar policy-wise (though a partisan wouldn’t agree).

However, it should be possible to design securities which explicitly tease out the effect of a candidate’s election on the market (or something else). One approach is I believe known as “conditional futures”. Three securities would do it: a) has a value determined by whether Bush wins, b) has the value determined by a market index on a date in the future, and c) has the value determined by a market index on the same date in the future if Bush wins, or zero otherwise. If c/a > b then the futures market thinks a Bush win is good for the market index in question. Alternatively b) could be determined by the value of the market on the same date in the future if Bush loses, in which case if c/a > b/(1-a) then the market thinks a Bush win is good.

You can see some claims along these lines in a play money (unfortunately) market:

(In calculations below I use last trade if available, otherwise average of bid and ask.)

bid ask last
/  /   /
61 62 61 http://www.ideosphere.com/fx-bin/Claim?claim=Bush04

Bush is likely to win.

47 48 NA http://www.ideosphere.com/fx-bin/Claim?claim=Stocks
25 30 25 http://www.ideosphere.com/fx-bin/Claim?claim=GBStok

25/.61 = 41 < 47.5 Bush win means lower stock returns? 51 53 52 http://www.ideosphere.com/fx-bin/Claim?claim=GBNuke
33 39 34 http://www.ideosphere.com/fx-bin/Claim?claim=JKNuke

52/.61 = 85 < 34/.39 = 87 Bush win means slightly lower chance of US getting nuked? CORRECTION: I misread *Nuke, which pay if the US does not get nuked. I should've written: "Kerry win means slightly lower chance of US getting nuked?" 75 77 76 http://www.ideosphere.com/fx-bin/Claim?claim=Terr10
20 74 NA http://www.ideosphere.com/fx-bin/Claim?claim=GBTerr

47/.61 = 77 > 76

Bush win means very slightly higher chance of terrorist attack in US?

Note these claims are mostly new with extremely thin volumes and probably don’t tell us much of anything at this point about the consequences of a (likely) Bush win, but one gets the idea, I hope.

Related notes:

Tradesports and the Iowa Electronic Markets (two real-money markets, though investment in IEM is limited) seem to be garnering lots of attention, at least amongst people I read. Geekmedia has yet another electoral map based on Tradesports markets for individual state outcomes (via Patri Friedman).

I think it isn’t widely known that large scale organized betting on election outcomes in the U.S. is a back-to-the-future phenomenon. I didn’t know until a few weeks ago when I encountered Historical Presidential Betting Markets while flipping through the Journal of Economic Perspectives at the newish San Jose main library (’tis very nice that it is a shared facility with SJSU, which means many more journals available to the general public). I indend[ed] to blog a summary.

Drifting:

Koleman Strumpf, one of the authors of the aforementioned paper, has also written on the effects of P2P — to much to read, too little time — and is an indie music fan. Funny quote from one of his media cites, The down low on downloads:

Strumpf, whose own tastes run toward independents, says it’ll be difficult for a study like his to measure their financial prospects. “The kind of albums that are put out by indie labels are not economically very important,” he says. “I know that must sound like a terrible statement. Believe me, if you look at my music collection, I’ve come to the conclusion that most of the music I listen to is economically irrelevant.”