Test for Prediction Markets: They Say Obama, but Polls Say It’s Tied

Fact: According to the latest Rasmussen poll released Saturday July 12, and promptly headlined by the Drudge Report, “The race for the White House is tied. The Rasmussen Reports daily Presidential Tracking Poll for Saturday shows Barack Obama and John McCain each attract 43% of the vote.” Newsweek is reporting a similar result in its own poll, with Obama moving down and McCain up (“Obama, McCain in Statistical Dead Heat“), and other polls increasingly show a similarly close race.

Analysis: I’ve been tracking the growing divide between two quite different methods purporting to offer statistical predictive analysis for the November presidential election. Polls are saying one thing, but Prediction Markets are saying another. 

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Up Late? Innovate.

Here’s some quick thought-provoking advice from Phil McKinney, who runs HP’s Innovation Program Office.  (Phil has his own blog as well, but the advice comes from an interview yesterday in the San Jose Mercury News.)

Q. One of your tips for innovation is to stay up late, because that’s when your filters are down. (The mental filters that rule out wild ideas, which might turn out to be good ones.) Do you still do that?

A. “Oh yeah, it drives my wife crazy. The idea really is to go back to things you’d do before you were successful, before you learned that you’ve always got to be on your guard.”

Man, do I swear by that!  Phil has some other points that I’m less enamored with, mostly because I don’t believe he’s thinking very radically.  His point that in the future we might be data-mining healthcare histories is undercut by the fact that we’re already doing it, as I blogged yesterday

Another less-than-startling prediction: We’ll still be using Second-Life style virtual worlds two decades from now?  Please!  I suppose we’ll also still be changing toner cartridges!!

Check out Phil’s blog, it reflects his innovative thinking better 🙂   But don’t read it till after midnight…

 
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Healthcare: It’s the Data, Stupid

Fact: Today’s L.A. Times has a startling report: “A stunning number of people who work in healthcare settings lack paid sick time — as many as 75% of all home health aides, for example… Federal data indicate that as many as 29% of all workers in the ‘healthcare and social assistance’ job sector lack paid sick days. Healthcare employees who work while ill may end up hurting the people they are hired to help….”

Analysis: Mark Twain said the only two sure things in life were death and taxes.  So it’s no surprise that the two presidential campaigns are focusing on healthcare and the economy, since people are universally affected in personal ways.  Forget taxes for today, I’m interested in technology’s role in healthcare, which is growing, and there’s no more potentially game-changing facet of that than the role of data. 

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Finally, a Candidate to Love

Click to watch the latest political phenomenonSaw this twittering by, now going very viral: watch here to see the latest political phenomenon.

Contributions gladly accepted…

(The back-story here is spelled out in a WIRED blog from a couple of weeks ago, which I just got around to reading. It’s an ingenious combination of viral marketing, campaign-news saturation, and the easily manipulable egocentricity of people like me. And you. We put the “you” in “youTube.”)

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So Long, Long Tail?

I’ve been known to disagree with Harvard eggheads before 🙂 

 

Chris Anderson's Long TailAnd now, perhaps, another opportunity. A new Harvard Business Review article (“Should You Invest in the Long Tail?” by HBS Professor Anita Elberse) throws water on Chris Anderson’s paradigm, arguing that “hit products” are still more valuable than the conglomerated also-rans in the tail; her research is mostly in retail products. Chris has responded on his blog, sparking many comments and debate, and today the Wall Street Journal covered the back-and-forth debate.

I’m interested in the debate mostly because of the interest in the Long Tail way of thinking in some circles of the intelligence community.  I’ve written about the approach and its relevance to some intelligence issues (see “Tradecraft in the Long Tail” and “IARPA and the Virtual Long Tail“).

I’m just not certain that even a total debunking of the retail-oriented paradigm would undercut its value as applied to intelligence analysis. 

For intelligence analysts, obscure “facts” and patterns hidden snugly within the low-scale noise are all important – whether or not they gain numerative bulk in any accumulative way.  The paradoxical “unknown unknowns” are what’s being sought by dogged collection and analysis, and I’m not sure that’s analogous to Elberse’s acknowledged findings. 

Your thoughts welcome, here or by email back to me.

 
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Loopt Brings Apple, Microsoft Together

I don’t have an iPhone (I like my Windows Mobile 6.1 platform better, on a touch-screen Samsung i760) so I miss iPhone news sometimes.  I’m tardy in learning that, In the words of one of my colleagues at the Institute for Advanced Technology in Governments, “Loopt is launching their app on iPhone and is using Virtual Earth. How did Apple ever allow that to happen?”  🙂

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Sales Guy vs Web Dude

The website where I first saw this video wrote, “This would be funny if it weren’t so true.”  No – it’s funny because it’s so true!  Yes, even in government IT settings.

The video’s here; adolescent language warning, a la South Park. If you don’t get the jokes, just reboot your system. 3 times.

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Innovation in Robotics: Government Uses?

Fact: Last week’s Automatica 2008, the big international robotics and automation trade-show, had “over 30,000 trade visitors from around 90 countries,” visiting 900 exhibitors’ booths, according to the conference wrap-up

Analysis: When I spoke recently at an IARPA conference in Orlando, and was asked to give a glimpse into Microsoft’s vision of R&D trends, one of the possibly surprising areas I highlighted was robotics.  We’re making a major push in that area, for reasons that might not be intuitive based on an old-fashioned impression of what Microsoft offers in the government realm.  More on the intelligence community’s potential use below.

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Early Bill Gates, and Bill’s Last Email

From Bill Gates’s final email today to “All at Microsoft”:

 

As Microsoft has grown, one of the most exciting and fulfilling things for me has been to watch new leaders develop. I am thrilled to have Ray and Craig playing key roles in guiding the company’s strategy… For over a decade I had hoped that we could convince Ray to join Microsoft — and in the three years he has been here, he has made a huge difference in helping us focus on the challenge and opportunity of software plus services. I have worked with Craig for more than 15 years. His ability to anticipate the future direction of technology is a key asset, as is his deep interest in and understanding of emerging markets.

Of course, I’ll continue to be involved in the work of the company as part-time Chairman. As part of this I will help with a handful of projects that Steve, Ray, and Craig select.”  

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Prediction Markets: Research and Limits

Fact: A story in Science Daily this week, “Election Forecasters Preparing For Historic Election,” relates the publication this month of the “assembled insights of prominent election forecasters in a special issue of the International Journal of Forecasting.” 

Analysis:  The journal articles are available here for download.  One of them, “Prediction Market Accuracy in the Long Run” (by Joyce E. Berg, Forrest D. Nelson, and Thomas A. Reitz from the University of Iowa’s Tippie College of Business), compares the presidential election forecasts produced from the granddaddy of them all, the Iowa Electronic Market (IEM), to “forecasts from an exhaustive body of opinion polls.”  Science Daily says they find that the IEM is “usually more accurate than the polls.”

If we extrapolate out, these election markets are special cases of prediction markets, and I’m always interested in those.

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