1. Complete works of Charles Darwin, now on-line.
2. Truth markets, explained by Dubner.
3. The money says Republicans still might hold both Houses.
by Tyler Cowen on October 26, 2006 at 2:25 pm in Web/Tech | Permalink
1. Complete works of Charles Darwin, now on-line.
2. Truth markets, explained by Dubner.
3. The money says Republicans still might hold both Houses.
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Like this quote from Darwin:
And this one from The Descent of Man:
*This* money begs to differ:
SENATE — http://tradesports.com/aav2/trading/contractInfo.jsp?conDetailID=291848&z=1160393249142
HOUSE –
http://tradesports.com/aav2/trading/contractInfo.jsp?conDetailID=291849&z=1160393282149
The third conclusion is spurious. Congressional candidates with more money win 93% of the time because incumbency is an overwhelming advantage, correlated with both superior fundraising and higher victory rates. Removed from incumbency, money has a decidedly smaller effect. In a year when incumbency’s benefits are mitigated more heavily than usual, the aid of additional dollars is particularly less dramatic.
Christopher Cassidy (an above commentor) is correct. Though much can be learned from the flow of money to candidates — investors (or campaign contributors, if you prefer) are better served to push their money toward candidates likely to win — a much purer guage of this likelihood can be found in the gambling markets. Pure bettors are less influenced many of the influences, such as personal political preferences, that campaign contributors allow to affect their investment choices.
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