Who Will Win the 2008 U.S. Presidential Election?
Eric Schulman
Alexandria, Virginia
Bio...
http://members.bellatlantic.net/%7Evze3fs8i/me/index.htmlDaniel Debowy
New York University School of Medicine, New York, New York
Abstract
Our 2003 algorithm for determining the winners of United States presidential elections correctly determined the winner of each of the 55 U.S. presidential elections between 1789 and 2004. We apply the algorithm to 44 Democratic and Republican candidates for the 2008 U.S. presidential election and find that the Democrats have nine tickets with electabilities greater than 150, whereas the Republicans have five tickets with electabilities greater than 150. The most electable ticket, with an electability of 264, has Republican former Governor Tommy G. Thompson as the presidential candidate and Senator Charles T. Hagel as the vice presidential candidate. The next most electable ticket, with an electability of 260, has Democratic retired General Wesley K. Clark as the presidential candidate and former Vice President Albert A. Gore Jr. as the vice presidential candidate.
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4. Discussion
As can be seen in Table 7 above, the most electable ticket has Republican former Governor Tommy G. Thompson as the presidential candidate and Senator Charles T. Hagel as the vice presidential candidate. The next most electable ticket has Democratic retired General Wesley K. Clark as the presidential candidate and former Vice President Albert A. Gore, Jr. as the vice presidential candidate.
We assume that major party primary voters are rational and will understand the empirical power of our algorithm. Democratic primary voters will therefore nominate Wesley K. Clark, Albert A. Gore Jr., William B. Richardson, or Christopher J. Dodd as their 2008 presidential candidate. This candidate, being rational, will choose Albert A. Gore Jr., Birch E. Bayh III, or Christopher J. Dodd as their vice presidential running mate. Republican primary voters will nominate Tommy G. Thompson, George E. Pataki, Michael D. Huckabee, or James S. Gilmore III as their 2008 presidential candidate. This candidate, being rational, will choose Charles T. Hagel or Richard B. Cheney as their vice presidential running mate (whether Mr. Cheney would accept a job that, as Vice President Nelson Rockefeller noted, "has no responsibility and no power" is beyond the scope of this paper).
Not everyone believes that major party primary voters are rational. Political prediction markets such as Intrade.com allow users to place bets on which candidates they think will win elections; their users show a remarkable confidence that major party primary voters will choose candidates with low electabilities. For example, on March 20, 2007, it cost Intrade users $45.30 to buy futures that would pay $100 if Hillary D. R. Clinton became the 2008 Democratic nominee for president. On that date, Rudolph W. L. Giuliani III futures cost $42.00, Barack H. Obama futures cost $30.00, John S. McCain III futures cost $20.10, and Williard M. Romney futures cost $16.00. Those five were the only candidates with Intrade presidential futures prices above $10 and their presidential electabilities range from a low of -110 to a high of 0. In contrast, Tommy G. Thompson (presidential electability of +154) and Wesley K Clark (presidential electability of +110) futures cost only 40 cents each. Figure 1 shows the electability vs. Intrade futures prices for 18 Democratic and 21 Republican candidates for president (solid circles) and 8 Democratic and 7 Republican candidates for vice president (open circles). The linear regression line shows that, in general, the higher a candidate's electability, the lower their Intrade price.
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