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. 

Pentagon’s New Program for Innovation, in Context

FACT: According to an article in today’s Washington Post, the Pentagon has announced “the selection of six university professors who will form the first class of the National Security Science and Engineering Faculty Fellows Program. The professors will receive grants of up to $600,000 per year for up to five years to engage in basic research — essentially a bet by the Pentagon that they will make a discovery that proves vital to maintaining the superiority of the U.S. military.”

ANALYSIS: This new program is an innovation from DoD’s Director of Defense Research and Engineering (DDR&E), and since tomorrow I’ll be at Ft. McNair for a two-day conference sponsored by DDR&E on Strategic Communications, I’ll congratulate John Young and his staff for the good idea.

But the Post article falls short in two ways: one immediate (it leaves out key information about next year’s program and the upcoming deadline!) and one longer-term (it ignores the overall context of federal support for R&D).  I’ll fill in the blanks below.