Crowdsourcing the supreme court?

Note: the post was revised and expanded on 16 April 2014.

As things currently stand, nine members of a quasi-legislative committee meet in secret to decide some of the most important cases and controversies in the U.S. (These politicians in robes are called “justices,” of all things.) Under the guise of judicial review (a power that does not appear anywhere in the original U.S. Constitution or in any of its amendments), a mere five members of this elite cabal have the self-declared and self-serving power to veto laws passed by Congress. There has got to be a more efficient and equitable way of deciding Supreme Court cases, right? Here’s a thought: why can’t we crowdsource some of the decisions of the cases pending before the Supreme Court, at least on an experimental or trial basis? For starters, by way of example, perhaps we could croudsource specific types of cases, such as disputes involving issues of intellectual property or bankruptcy law, allowing all lawyers who practice in these legal fields (and, why not, law professors who teach these subjects) to cast a vote on the outcome of such cases as they arise?

Constitutional Postscript: Note that Article III of the U.S. Constitution calls for a national supreme court, but Art. III does not require a certain number of “justices” or a specific type of procedure for deciding supreme court cases. So there are no constitutional or technological barriers preventing us from trying out such a crowdsourcing reform as the one described above, just a lack of our collective imaginations.

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Your tax dollar at work …

Check out this tax-time data visualization from our friends at fastcompany.com:
We want our money back!
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In defense of Aldon Smith

TMZ Sports was the first to report that police officers in Los Angeles had arrested NFL linebacker and defensive end Aldon Smith at LAX last Sunday afternoon (13 April 2014) for becoming belligerent and making a false bomb threat before boarding his flight. But before we rush to judgment in this particular case, it’s important to remember what triggered this sorry state of affairs in the first place: annoying and largely ineffective airport security protocols. Specifically, Mr Smith was “randomly” selected for a secondary (i.e. more intrusive) screening after he had already been screened at the main security checkpoint in Terminal 1 of the Los Angeles airport. (By the way, in any other context these grotesque, invasive, and non-consensual airport searches would no doubt constitute a common law invasion of privacy tort, would they not?) Thus we say Mr Smith had every right to be upset. His fake bomb threat (assuming he even made such a threat) is no less farcical and stupid than the airport searches designed to detect such threats. In short, why do Americans like to proclaim that we live in a free country when our major airports and other public venues (like NFL football stadiums) are anything but free. Our airports and arenas have become mini-Gulags, mini-police states. Or, as Senator Rand Paul said at a speech at Cal-Berkeley last month, this is not the stance of a free man:

Thanks, TSA, we feel much safer now …

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Model this: nice guys finish last?

The Iterated Prisoner’s Dilemma, one of the most important models in game theory, predicts that business firms that screw their customers should fail, not succeed. But check out this recent report in Bloomberg Businessweek: The most hated airline is also the most profitable. Here are some excerpts:

Spirit Airlines inspires a special kind of wrath among the American traveling public: It’s the industry leader in customer complaints by a wide margin. Over the last five years, Spirit’s rate of complaints to the Department of Transportation was three times higher than other U.S. airlines … The loathing has also inspired a dedicated Twitter feed: @hatespiritair. Its customers will probably find this annoying, too: In spite of the rancor it inspires, Spirit has become the most profitable U.S. airline in terms of its operating margin and return on invested capital. Spirit’s 16.2 percent margin is highest among U.S. public airlines, as is its 26 percent return on capital, according to data compiled by Bloomberg … Spirit shares have gained 439 percent since its mid-2011 public offering at $12.

Since neither the rational actor model nor the repeat Prisoner’s Dilemma model seem to hold in this case, how would you model or otherwise explain this perverse outcome?

Data visualization courtesy of Slate.

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The Coase Theorem and the Game of Chicken

Note: this post was revised and updated on 13 April 2014.

There are only two parties to this particular dispute, a public agency and a private cattle rancher (thus so-called “transaction costs” are low), so what’s preventing them from negotiating a wealth-maximizing Coasean bargain?  Maybe the property rights in this particular case are not well-defined. Alternatively, perhaps this conflict should be modeled as a Game of Chicken, since one of the sides just swerved. Can you guess who the chicken was?

Addendum: here are a few other cinematic situations in which the Coase Theorem may not hold.

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A hypothetical question

The LBJ Presidential Library in Austin, Texas recently convened a Civil Rights Summit to celebrate the 50th anniversary of the historic Civil Rights Act of 1964. Yet no one at the summit raised the most obvious question: is the old Civil Rights Act still necessary in this day and age? If so, why? Would you expect the level of racial, religious, or gender discrimination to go up, go down, or stay the same if this 50 year-old law were repealed tomorrow? (As an aside, does the existence of discrimination refute either the rational actor model of economics or the main tenets of the Coase Theorem?)

So is it time to repeal the 1964 Civil Rights Act? If not now, when?

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Sumner on Cowen on Silver on Aaron

Scott Sumner just wrote up a thoughtful analysis of Tyler Cowen’s reply to Nate Silver’s counter-factual thought-experiment about baseball. But we here at prior probability are not so much interested in the original question of Nate Silver’s post (“If Hank Aaron had never hit a home run, would he still be a hall of famer?”). Nor do we wish to challenge Tyler Cowen’s point about strategic behavior (we agree with Tyler) or rehash Scott Sumner’s critique that Mr Silver is simply assuming strategic behavior away in his analysis. What we do wish to discuss here is an intriguing question that Scott poses at the end of his post:

Which of the following should cause us to “think less” of a player’s career:

1.  A pitcher throws lots of spitballs, which the umps fail to notice.

2.  A lineman in football is cleverly able to disguise the fact that he holds defensive players, and doesn’t get called.

3.  A player uses a banned performance enhancing drug that some other players also use.

4.  A player is the only person in baseball to use a certain legal performance enhancing drug (because other players are unaware of it.)

In our view, scenarios #1 and #2 are equivalent (in both cases, the players are cheating but are not getting caught), and we would not “think less” of such players since it takes skill not to get caught cheating. By contrast, the player in scenario #3 is stuck in an arms race with his fellow players (i.e. he has no choice but to use banned drugs in order to compete effectively), so we wouldn’t think any less of him either (indeed, we agree with Scott Sumner that Barry Bonds is the best batter in baseball history). This leaves #4 … we would “think less” of the player in scenario #4 because his success on the field is simply the result of luck and timing.

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Do fake prediction markets work?

There’s a new information quasi-market called SciCast based on “crowd sourcing” methods and reputation effects, not on prices–i.e. participants who make the most accurate predictions move up a symbolic scoreboard but are not paid with real money. You could argue that one well-designed quasi-market is better than a thousand partisan pundits, but without real stakes or wagers, are fake prediction markets doomed to fail in the long run?

Another fake prediction market?

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Should politicians be legally liable for making false campaign promises?

To be more precise, should the tort of fraudulent misrepresentation apply to promises made by politicians running for office? (Put another way, why are most claims of fraud or deceit limited to commercial cases?) One reason politicians are generally not liable for fraud when they make false promises is the common law doctrine of “justified reliance.” In other words, to win a common law fraud case, the allegedly fraudulent statement must not only be material and factual; the plaintiff’s reliance on such statement must also be justified (whatever that means). Since representations of opinion, representations about law, and representations about the future are usually not considered material or factual, most politicians are off the legal hook, so to speak.

So which candidate lied the least?

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Is SeaWorld guilty of false imprisonment?

Right now a controversial piece of draft legislation, Assembly Bill 2140, is pending before the Water, Parks, and Wildlife Committee of the California State Assembly. This bill would require SeaWorld San Diego to stop using killer whales in its iconic marine shows and to release them from their tanks. According to Naomi Rose, a marine mammal scientist with the Animal Welfare Institute, orcas “are too large, too intelligent, too socially complex and too far-ranging to be adequately cared for in captivity”. In its current form, however, the proposed law would not compensate SeaWorld for its losses. Would such a law be constitutional?

In any case, do we really need special legislation to liberate Shamu and the other killer whales currently in captivity? If Ms Rose (the marine mammal scientist quoted above) is correct, isn’t SeaWorld guilty of some form of false imprisonment? (But who would have standing to bring a legal action against SeaWorld for false imprisonment? The District Attorney?) In brief, the tort of false imprisonment occurs when A restrains B in a bounded area without justification or consent. Doesn’t this legal definition accurately describe SeaWorld’s cruel captivity of Shamu?

Help me! I’m being held captive against my will …

 

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