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The Effects of Political Information on Expectations about Election Outcomes: Campaigns and Futures Markets

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Abstract:

To judge which events during a campaign affect election outcomes, a continuous variable that reacts quickly to information is preferable to polls or panel studies. The pricing of futures contracts in prediction markets provide this kind of dependent variable. This paper looks at the volatility of the prices of futures in the 2004 presidential election markets as a measure of uncertainty about an event’s effects in addition to looking at the probability of a candidate winning as evidenced in the equilibrium futures price. Excluding election day, when early exit polls were used by traders, the events that caused the most volatility in prices in prediction markets in the 2004 presidential election campaign were the CBS story about Bush’s National Guard service and its retraction; Bush’s poor performance in the first debate; and the ‘tie’ in the third presidential debate.

Most Common Document Word Stems:

market (137), price (111), inform (64), predict (63), contract (61), volatil (56), elect (49), trader (44), futur (40), bush (40), vote (37), octob (36), work (34), polit (34), candid (32), 8 (32), poll (31), 10 (30), event (29), day (29), debat (28),
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Name: Southern Political Science Association
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http://www.spsa.net


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MLA Citation:

Rickershauser, Jill. "The Effects of Political Information on Expectations about Election Outcomes: Campaigns and Futures Markets" Paper presented at the annual meeting of the Southern Political Science Association, TBA, TBA, Jan 05, 2006 <Not Available>. 2009-05-25 <http://www.allacademic.com/meta/p68416_index.html>

APA Citation:

Rickershauser, J. , 2006-01-05 "The Effects of Political Information on Expectations about Election Outcomes: Campaigns and Futures Markets" Paper presented at the annual meeting of the Southern Political Science Association, TBA, TBA Online <PDF>. 2009-05-25 from http://www.allacademic.com/meta/p68416_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: To judge which events during a campaign affect election outcomes, a continuous variable that reacts quickly to information is preferable to polls or panel studies. The pricing of futures contracts in prediction markets provide this kind of dependent variable. This paper looks at the volatility of the prices of futures in the 2004 presidential election markets as a measure of uncertainty about an event’s effects in addition to looking at the probability of a candidate winning as evidenced in the equilibrium futures price. Excluding election day, when early exit polls were used by traders, the events that caused the most volatility in prices in prediction markets in the 2004 presidential election campaign were the CBS story about Bush’s National Guard service and its retraction; Bush’s poor performance in the first debate; and the ‘tie’ in the third presidential debate.

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Abstract Only All Academic Inc.
Associated Document Available Political Research Online
Associated Document Available Southern Political Science Association

Document Type: PDF
Page count: 24
Word count: 7129
Text sample:
Judging the Consequential Events of the 2004 Presidential Campaign: Prediction Markets Volatility and Campaign Effects Jill Rickershauser Department of Political Science Duke University jcr12@duke.edu To judge which events during a campaign affect election outcomes a continuous variable that reacts quickly to information is preferable to polls or panel studies. The pricing of futures contracts in prediction markets provide this kind of dependent variable. This paper looks at the volatility of the prices of futures in the 2004 presidential election
October 18 October 16 October 5 October 10 October 16 October 28 September 14 September 21 October 8 August 6 September 23 October 4 October 1 September 11 October 19 November 1 September 24 September 1 August 1 October 12 September 30 October 28 October 16 August 18 October 31 July 30 October 20 September 29 October 17 August 26 September 16 August 17 October 30 September 16 October 6 September 16 September 16 Working Draft 24


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