“You are not so smart”

prior probability is sure you have heard of the famous placebo effect in medicine, but have you ever heard of “placebo buttons”??? Thanks (once again) to the amazing Tyler Cowen, I found this fascinating exposé of placebo buttons on David Craney’s cool blog You are not so smart:

“In many offices and cubicle farms, the thermostat on the wall isn’t connected to anything. Landlords, engineers and HVAC specialists have installed dummy thermostats for decades to keep people from costing companies money by constantly adjusting the temperature. According to a 2003 article in the Wall Street Journal, one HVAC specialist surmised that 90 percent of all office thermostats are fake (others say it’s more like 2 percent). Some companies even install noise generators to complete the illusion after you turn the knob.”

Can you think of any other possible placebos? What about law? Are hearings and other forms of legal process a kind of “legal placebo” used to fool the losing party into believing that the outcome is just?

Hat tip: Tyler Cowen of Marginal Revolution

Posted in Uncategorized | Tagged , | Leave a comment

A contract is a bet …

Charles Fried, a law professor at Harvard, famously argued that a contract is a promise. We at prior probability, however, say that a contract is more like a bet.

Consider the relation between sports contracts in baseball and hitting success. When a team signs a player and pays him x dollars, there is always the risk that a player will not live up to his potential, that the x dollars (or some fraction thereof) will be misspent. (In this regard, Alex Rodriguez of the Yankees and Albert Pujols of the Angels come to mind.) This cool graphic published in today’s Times compares the level of salary (on the x-axis) with the number of hits (on the y-axis) for the ten highest-paid hitters on each Major League team. It shows that the relation between salary and success is not obvious. (It also shows the New York Yankees get the least bang for their buck.)

So, why don’t more teams use performance-based contracts to minimize this risk?

Posted in Uncategorized | Tagged , , , , , , , | Leave a comment

Is legal positivism finally dead?

Legal positivism is an influential descriptive theory of law; its main claim, in brief, is that law and morality are separate. Along comes David Gray Carlson, a law professor at Yeshiva University, who recently published this thought-provoking paper on “Legal Positivism and Russell’s Paradox.” His paper on legal positivism is insightful, original, and non-trivial because it applies ideas from the world of mathematics–Russell’s Paradox and the axioms of Zermelo-Fränkel set theory–to the theory of legal positivism. But it was the following sentences in particular that stood out the most in my reading of his wonderful paper:

“What is positivism? In recent decades it has been difficult to say. But perhaps the core belief … is that law is not necessarily connected with morality. What is morality? Scandalously, positivim fails to provide an adequate definition beyond the claim that law is not necessarily connected with it.” (*)

Did Professor Carlson just stab the vampire-like theory of legal positivism in the heart with a stroke of his pen? (I say “vampire-like” since positivism attempts to suck morality out of the law.) At the very least Carlson has shown that legal positivism is a feeble theory of law … because without a working definition of ethics or morality, there is no way to test whether positivism is true as a descriptive matter!

(*) D.G. Carlson, “Legal Positivism and Russell’s Paradox,” Washington University Jurisprudence Review, 5(2): 257-288 (2013), p. 260 (footnote omitted).  Cartoon courtesy of xkcd

Posted in Uncategorized | Tagged , , , | 2 Comments

Will Puerto Rico become the 51st State?

Yesterday, the Committee on Energy & Natural Resources of the U.S. Senate held yet another committee meeting to hear testimony on the political status of Puerto Rico. (I say “yet another committee meeting” because Puerto Rico has been a de facto and de jure colony of the United States since the Cuban-Spanish-American War of 1898. Is there such a thing as too much due process? Why won’t Congress just vote up or down on whether to admit Puerto Rico as a State, which Congress has the power to do under Article IV of the Constitution?)

FYI, Puerto Rico has been a Commonwealth or non-State territory of the United States since 1952. A dwindling number of Puerto Ricans favor Independence, while the rest of Puerto Rico’s electorate is almost equally divided between Statehood and Commonwealth. If you love this subject as much as I do, you can watch yesterday’s 90-minute theatrical hearing here. Here is my summary of yesterday’s hearings:

In summary, supporters of Statehood and Independence want to take the current Commonwealth option off the ballot during the next political status vote. Supporters of Commonwealth cry foul, arguing that this would be a form of disenfranchisement. Statehood and Independence partisans reply in turn that the current Commonwealth status itself is a form of disenfranchisement, since the Commonwealth is territorial or colonial in nature.

prior probability‘s take is that Puerto Rico status politics is a prime example of Condorcet’s Paradox. We will be blogging more on this fascinating subject in the weeks to come, so in the meantime, tell me what you think … Should Puerto Rico become a State of the Union, remain a territorial Commonwealth, or become an independent Republic like Cuba or Panama?

Posted in Uncategorized | Tagged , , , , | Leave a comment

When will the U.S. release its remaining political prisoners?

Consider the case of Oscar Lopez Rivera, a Puerto Rican Nationalist who was convicted and sentenced to 70 years in prison for “seditious conspiracy” and has already served more than 32 years of his unjust sentence (more time than Nelson Mandela spent in jail in South Africa). According to Wikipedia, Mr Lopez Rivera rejected an offer of “conditional clemency” by President Clinton in 1999, so who is to blame for Mr Lopez Rivera’s continued incarceration? In any case, why doesn’t President Obama take the moral high ground and offer a full pardon to Mr Lopez Rivera?

Posted in Uncategorized | Tagged , , , | 1 Comment

Edward Snowden, state secrets, and double standards

Edward Snowden has been charged by the U.S. Government with stealing and disclosing classified information. But prior probability would ask, didn’t our Government itself unlawfully “steal” the data that Mr Snowden eventually disclosed?

Cartoon courtesy of http://lolzparade.com/politics/edward-snowden-timeline?page=5

Posted in Uncategorized | Tagged , | Leave a comment

Is Facebook the next tech bubble?

Some say yes, but many others say no (*).

(*) i.e., presumably those investors or speculators who have bought Facebook stock since its IPO last year. Graphic courtesy of http://ehow-to-do.com/how-ponzi-schemes-work

Posted in Uncategorized | Tagged , , | Leave a comment

Is Bitcoin a scam?

Bitcoin is an open-source, peer-to-peer, electronic currency. In brief, the Bitcoin concept was introduced in 2008 in a paper by “Satoshi Nakamoto,” a mysterious person (or possibly a group of persons) whose true identity is still unknown. Furthermore, according to this Bitcoin exchange, one Bitcoin is now worth about $102 USD (as of 1 August 2013).

So is  Bitcoin a scam (or at the very least an overvalued currency)? Again, some say yes; others say no.  Here is more. What say you?

Posted in Uncategorized | Tagged , , | 1 Comment

What is the probability that a large asteroid will collide with Earth?

According to Wikipedia, asteroids with a 1 km diameter strike Earth every 500,000 years on average. Moreover, “Large collisions–with 5 km (3 mi) objects–happen approximately once every twenty million years. The last known impact of an object of 10 km (6 mi) or more in diameter was at the Cretaceous–Paleogene extinction event 66 million years ago.” You do the math …

Posted in Uncategorized | Tagged , , | Leave a comment

The strategy of escalator conflicts

prior probability asks, should you walk or stand when your are going up (or down) an escalator? The solution to this problem is apparently non-trivial. Here, for example, is one recent BBC report on this question. Here is another take on this question, and here is yet another. Don’t these conflicting behaviors and approaches to escalator travel falsify F.A. Hayek’s famous “spontaneous order” thesis?

Helen Tseng's illustrationI

llustration by Helen Tseng for the Bold Italic website

Hat tip (again) to Tyler Cowen and John B. Chilton

Posted in Uncategorized | Tagged , , , | Leave a comment