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Showing posts with label outcome. Show all posts
Showing posts with label outcome. Show all posts

Wednesday 16 August 2023

A level Economics: Starting Fair and Dealing with Luck: Comparing Monopoly and Real Economies

 ChatGPT

Think about Monopoly, the game where you buy properties and compete to win. Now, let's compare it with how the real world works when it comes to money, businesses, and luck.

In Monopoly, every player starts with the same amount of money. This makes sure that nobody gets an advantage right away. It's like starting a race with everyone on the same line. This makes the game about skills and strategy.

But in real life, things can be different. Some people start with more money or better chances. It's like some players in Monopoly starting ahead with better properties. This isn't fair, and it's how it is in the real world sometimes.

In Monopoly, luck comes into play with the roll of dice and the cards you draw. Sometimes you land on good spots, and sometimes not. Luck can make a big difference in the game. Similarly, real life has surprises too. New inventions, what people want to buy, and unexpected events can change how well businesses and people do.

But here's where they're not the same. In Monopoly, luck only matters during the game. In real life, luck is just one piece of the puzzle. Real life is more complicated. It's not just about luck – it's about how things are made, what people like, and rules set by governments. All of these things make the real world much harder to predict than a game.

So, in Monopoly, luck follows the game's rules. In real life, luck mixes with many other things, making it more complex. The comparison between Monopoly and real life reminds us that the real world is unfair and trickier.

Friday 16 June 2023

Economic Freedoms and Outcomes

Discuss the relationship between economic freedom and economic outcomes in a market system

Let's take a balanced approach by discussing both the positive and negative aspects of the relationship between economic freedom and economic outcomes in a market system:

  1. Economic Freedom and Positive Outcomes:

a) Entrepreneurship and Innovation: Economic freedom fosters an environment where individuals can freely engage in entrepreneurship and innovation, leading to economic growth and job creation.

Example: "In countries with high economic freedom, like South Korea, entrepreneurs have been able to start successful businesses and drive technological advancements, resulting in economic prosperity and increased employment opportunities."

b) Efficient Resource Allocation: Economic freedom allows market forces to allocate resources efficiently based on supply and demand, ensuring optimal utilization and productivity.

Example: "In a market system with economic freedom, price signals help guide producers in allocating resources effectively. This leads to efficient production and distribution, benefiting both producers and consumers."

  1. Potential Negative Aspects of Economic Freedom:

a) Income Inequality: Unrestricted economic freedom can contribute to income inequality, as it allows for the accumulation of wealth by a few individuals or groups.

Example: "In some cases, economic freedom has led to a concentration of wealth among the top earners, exacerbating income inequality and creating social disparities."

b) Market Failures and Externalities: In a completely free market, certain goods and services, such as public goods or environmental conservation, may be underprovided due to market failures. Additionally, negative externalities like pollution may not be adequately addressed without government intervention.

Example: "While economic freedom encourages efficiency, it may overlook external costs such as pollution. Without regulations, businesses may not be motivated to address environmental concerns, leading to negative consequences for society."

Quotation: "Capitalism does a number of things very well: it helps create an entrepreneurial spirit, it gets people motivated to come up with new ideas, and that's a good thing." - Bernie Sanders

It's important to strike a balance between economic freedom and necessary regulations to address income inequality, market failures, and externalities. Governments often play a role in ensuring fairness, protecting consumers, and implementing policies to address societal concerns.

By acknowledging both the positive and negative aspects, societies can aim for a market system that promotes economic freedom while addressing the challenges associated with income inequality and market failures. This balanced approach can help achieve sustainable economic growth and social well-being.

Monday 27 June 2022

Don’t date anybody if you only want positive results! Life is poker not chess

Abridged and adapted from Thinking in Bets by Annie Duke





Suppose someone says, “I flipped a coin and it landed heads four times in a row. How likely is that to occur?”


It feels that should be a pretty easy question to answer. Once we do the maths on the probability of heads on four consecutive 50-50 flips, we can determine that would happen 6.25% of the time (0.5 x 0.5 x 0.5 x 0,.5).


The problem is that we came to this answer without knowing anything about the coin or the person flipping it. Is it a two-sided coin or three-sided or four? If it is two-sided, is it a two-headed coin? Even if the coin is two sided, is the coin weighted to land on heads more often than tails? Is the coin flipper a magician who is capable of influencing how the coin lands? This information is all incomplete, yet we answered the question as if we had examined the coin and knew everything about it.


Now if that person flipped the coin 10,000 times, giving us a sufficiently large sample size, we could figure out, with some certainty, whether the coin is fair. Four flips simply isn’t enough to determine much about the coin


We make this same mistake when we look for lessons in life’s results. Our lives are too short to collect enough data from our own experience to make it easy to dig down into decision quality from the small set of results we experience. If we buy a house, fix it up a little, and sell it three years later for 50% more than we paid. Does that mean we are smart at buying and selling property, or at fixing up houses? It could, but it could also mean there was a big upward trend in the market and buying almost any piece of property would have made just as much money. Bitcoin buyers may now wonder about the wisdom of their decisions.


The hazards of resulting


Take a moment to imagine your best decision or your worst decision. I’m willing to bet that your best decision preceded a good result and the worst decision preceded a bad result. This is a safe bet for me because we deduce an overly tight relationship between our decisions and the consequent results. 


There is an imperfect relationship between results and decision quality. I never seem to come across anyone who identifies a bad decision when they got lucky with the result, or a well reasoned decision that didn’t work out. We are uncomfortable with the idea that luck plays a significant role in our lives. We assume causation when there is only a correlation and tend to cherry-pick data to confirm the narrative we prefer.


Poker and decisions


Poker is a game that mimics human decision making. Every poker hand requires making at least one decision (to fold or to stay) and some hands can require up to twenty decisions. During a poker game players get in about thirty hands per hour. This means a poker player makes hundreds of decisions at breakneck speed with every hand having immediate financial consequences. 


It is a game of decision making with incomplete information. Valuable information remains hidden. There is also an element of luck in any outcome. You could make the best possible decision at every point and still lose the hand, because you don’t know what new cards will be dealt and revealed.


In addition, once the game is over, poker players must learn from that jumbled mass of decisions and outcomes, separating the luck from the skill, and guarding against using results to justify/criticise decisions made,


The quality of our lives is the sum of decision quality plus luck. Poker is a mirror to life and helps us recognise the mistakes we never spot because we win the hand anyway or the leeway to do everything right, still lose, and treat the losing result as proof that we made a mistake,


Decisions are bets on the future


Decisions aren’t ‘right’ or ‘wrong’ based on whether they turn out well on any particular iteration. An unwanted result doesn’t make our decision wrong if we had thought about the alternatives and probabilities in advance and made our decisions accordingly. 


Our world is structured to give us lots of opportunities to feel bad about being wrong if we want to measure ourselves by outcomes. Don’t fall in love or even date anybody if you want only positive results.





Tuesday 9 February 2016

If we want to solve the housing crisis, we must answer these three questions

Paul Mason in The Guardian

As housing charity Shelter turns 50, the country is still plagued by overcrowding, rogue landlords, insecure tenancies and homelessness. How do we even begin to make things better?



Boys from the City Of London school on a charity walk in aid of Shelter from Blackfriars, London, to Windsor, Berkshire, on 26 March 1969. Photograph: Len Trievnor/Getty Images


Its official name was Navigation Street, and a glance at a 19th century map suggests its origin: an isolated row of terraced houses leading down to the canal that runs through the middle of my hometown.

Canals were originally called “navigations” and the people who dug them “navvies”. This term – still in use in the 1960s – was code for poor, itinerant, Irish manual workers. So we called it “Navvy Street”: it was where the poorest people in the town lived and probably served that function from when it was built to when it was knocked down and turned into a “close”.

Navigation Street was the place I thought of when the housing charity Shelter reissued documentary photographs from the 1960s to mark its 50th anniversary. If you flick through Nick Hedges’ photos now, you could be forgiven for thinking they depict some kind of uniform, northern industrial bleakness at of the time. But you’d be wrong.



Shelter and the slums: capturing bleak Britain 50 years ago



The overcrowding, dirt and abject poverty in those images shocked people because they were exceptional. Two decades of post-war social housebuilding, plus a pro-active welfare state, had done a lot to suppress poverty. Places like Navigation Street were rare by the late sixties.

Shelter was born because people realised dwindling number of classic slum streets were not the only problem: there was widespread hidden homelessness expressed through overcrowding. The private rented sector was utterly insecure and housing costs were devouring the incomes of the poor.

Skip forward 50 years and we too have rising homelessness – 54,000 families in England last year, up 36% since the financial crisis began. Housing charities record rising overcrowding, precarious tenancies, predatory landlords and unaffordable rents. The difference is it’s not only the poor who suffer.

The shared student house has been reincarnated as the shared young professional’s house, with some even forced to share rooms. According to Crisis, there are 3.5m households containing a “concealed” adult or couple in England.

Meanwhile apartments too small to live in are being built across southern England: their occupants will have jobs once considered middle class. Precarious tenancies, outlawed during the housing reform movement of the 1960s, have created a “complain and you’re out” culture.

If you wanted to photograph the modern housing problem you’d go to the coffee shops where young people perch over laptops, late into the night, rather than endure their overcrowded flat. You would photograph the sofa-surfers; the migrants forced to live in converted garages; the families packing their bags as rent hikes and benefit cuts in the private rented sector force them to move to the periphery of towns and cities, or throw themselves at the local council for help.

The root of this problem is not one of policy – though the row over social housing and housing supply will probably shape this parliament – the deeper problem is the financialisation of home ownership.

At one point, rising home ownership solved many of the problems identified the 1960s. The predictably steady rise in house prices over time, like predictable inflation, created an escalator for the working class. If you combined that with vigorous social housebuilding, as practised by both Labour and Conservative councils in the 1970s, you created affordability at both ends of the scale.

If you then dramatically slash the supply of social housing, through right-to-buy and reduced council building, you create a permanent imbalance that turns home ownership into a form of asset investment.



‘Pay to stay’ trap will force working families out of council homes



What you get then is boom and bust. And the only way to cure the bust is for the government to greet every collapse in market prices with effective state subsidies for home ownership. This, in turn, induces a speculative frenzy of one way bets – on development, on buy to let, on off-plan investment buying from abroad.

To economists who study financial frenzy, the British housing market has followed the classic curve: the certainty of rising prices and short supply draws more and more people into the market, knowing a crash cannot wipe them out – because when confronted with falling house prices, governments have used taxpayers’ money and micromanagement of the banks to halt a spiral of repossessions and falling prices.

We don’t know what Britain would look like if the same levels of explicit subsidy and implicit preference had been pumped into the social rented sector. All we know is that the current situation is not tenable.

But we can ask ourselves the following questions:

First: how much space are people entitled to live in?
The market sets no limits; even such formal rules as they still exist (they are being weakened) are flouted by the young salariat.

Second: what is the optimal balance between the private, social and state-owned rented housing and the owner-occupied sector? This cannot be hard to fathom since many cities in the 1980s and early 1990s achieved housing markets that “cleared” in economic terms: in Leicester in the 1980s I had no problem finding a secure private tenancy; no problem getting the council to hound my landlord to maintain it properly; very little problem moving from there to a housing association flat; very little problem transferring, as a key worker, from there to a council flat in London. Yes, London.

Third, what do we mean by “affordable”– when it comes to either rents or prices on state-specified newbuild homes? Under both Labour, Coalition and the Conservatives the concept of affordability has become delinked from incomes and attached to a percentage of the market rate. The same state that decided nobody should be repossessed during the 2008-11 housing slump could decide that nobody has to pay more than a fixed percentage of their incomes on housing costs.

Maybe we need to start with principles: that everyone has a right to a home; that every person has a right to a minimum amount of space in that home; and that those who claim the right to own houses nobody lives in should pay a hefty, disincentivising penalty.

Yes, that’s an infringement of the market – but housing in Britain has never been a free market: it is being created and re-created through regulation and deregulation – on benefits, on affordability, on building standards, on right to buy. The point is to shape the market towards smart outcomes.

Thursday 17 September 2015

Databall

Big data is already reshaping on-field tactics and team selection. It may not be too long before it changes the game as we know it
KARTIKEYA DATE in Cricinfo | SEPTEMBER 2015

In 2012, Rajasthan Royals signed Brad Hodge, one of a generation of high-quality Australian cricketers who spent years on the fringes of an all-time great side. Given Hodge's pioneering T20 efforts, above and beyond his first-class and Test experience, this was a major signing by IPL standards.

Conventional wisdom held that Hodge should bat early in the innings. But Royals used Hodge deep in the order, preferring lesser local players at Nos. 3, 4 and 5. Observers were perplexed. ESPNcricinfo's S Rajesh wrote that their decision defied logic because Hodge had better overall numbers than those who batted ahead of him.

Zubin Bharucha, Royals' director of cricket, explained the rationale behind Hodge batting at No. 6 or even 7 in an email interview. He said Royals had "nobody better to play the role against the fast bowlers, and with those last four-five overs deciding the course of a majority of games, wouldn't you want the player having the best stats against fast bowling to take on the responsibility for that phase?"

According to Bharucha, they found that Hodge had done brilliantly against pace (a strike rate of 157) but relatively poorly against spin (strike rate 115). Why use him at No. 3 when he would almost certainly have to face the full spells of the opposition's specialist spinners? Even if a spinner was bowling late in the innings, Rahul Dravid, then Royals' captain, told me in a Skype interview, the instructions to Hodge were to avoid taking chances, play the over out if need be, and save himself to attack the faster bowlers. Hodge's batting position was incidental. The point was to use him against fast bowling at the end of the innings. Data showed that this would be a better use of Hodge than the more conventional approach.

A journeyman Ranji Trophy batsman could work on one aspect of his attacking play to the exclusion of all others and become useful for his franchise as a hyper-specialist

This strategy seemed to work during Hodge's second season with Royals. He remained unbeaten seven times in 14 innings and scored 293 runs in 218 balls. Interestingly Hodge played for two other T20 sides between 2012 and 2014 - Melbourne Stars and Barisal Burners. Both used him in one of the top three spots and he did just as well in terms of strike rate and batting average. However, the success of Royals' experiment lay not just in Hodge's numbers but in the success of other players and of the team as a whole.

Royals was not the first side to make such a tactical choice. Don Bradman famously reversed his batting order on a drying pitchin Melbourne in the 1936-37 Ashes. Sunil Gavaskar has written in One Day Wonders about holding back Kapil Dev while Lance Cairns was bowling in the semi-final of the 1985 World Championship of Cricket. Gavaskar felt Kapil was better off taking on the pace of Richard Hadlee rather than the deceptively tempting mediums of Cairns. Kapil made 54 in 37 balls and saw India home.

There have also been more systematic tactical choices. During the 1995-96 Australian domestic season, John Buchanan, then the Queensland coach, used Jimmy Maher and Martin Love to take on fast bowlers in the last ten overs. As Buchanan explained in an email interview, "I wanted skilled batsmen who could also run well between wickets to take advantage of this period. It did mean we might sacrifice some scoring possibilities earlier, but I backed our top order as well as the fact that we chose some batting allrounders who could bat higher."


Fast-bowler slayer: Rajasthan Royals' use of Brad Hodge down the order defied conventional wisdom, but it paid off © AFP

More famously Ajit Wadekar and Mohammad Azharuddin used Sachin Tendulkar to open the innings in ODIs in 1994, a move that lasted 18 years, multiple captaincies and brought India 15,310 runs and two World Cup finals. Arguably, it also paved the way for two other middle-order batsmen, Sourav Ganguly and Virender Sehwag, to open in ODIs.

Note the difference between Bharucha's explanation for the Hodge tactic and the other examples. Buchanan's explanation was based on an understanding that a specialist batsman's methods are useful against faster bowlers. Gavaskar's educated guess was down to his reading of Kapil's approach. Bradman surmised that the surer methods of specialist batsmen would yield greater results on a drier pitch. The "data", such as it was, that Wadekar and Azharuddin had to go on, had to do with Tendulkar's ability to attack the bowling, and Tendulkar's enthusiasm for the job. Bharucha had nothing to say about Hodge's technique or approach. His reasoning was based entirely on a new kind of measurement - the measurement of outcomes, based on events that had been recorded.

The central question teams need to tackle is whether or not a coach has a legitimate role as a tactician when a game is in progress


It would be a mistake to think that tactical choices were not based on data before the IPL or before Buchanan became Australia's coach. Data was used. It was data about technique and approach, not outcomes. It may not have been tabulated into percentages or frequency distributions or probabilities, but technique has always been based on propensities. The history of the game is littered with stories of eagle-eyed slip fielders who could see a batsman and work out his weaknesses - which good bowlers could then exploit. The use of logical inference based on observed fact to improve performance and make tactical choices is as old as the game itself. What is new is the type of data being collected.

"Moneyball", the data revolution in baseball, is about getting better value for money. As Jonah Hill's character in the movie about Oakland Athletics explains, teams have to think in terms of buying runs and outs, not players. The argument in Moneyball is an argument between two types of data: data from scouts, who observe players and reach judgements about their potential, and data about outcomes - runs, outs, walks, strikeouts and the like.

In baseball, the basic use of data about outcomes is to identify inefficiencies in the way players are valued. The returns on this approach should logically diminish with time; an inefficiency is only an inefficiency until other teams also see it as one. For example, if Mumbai Indians decided to use their deeper pockets to ensure the most favourable match-ups for as many of the 20 overs as possible, Royals would no longer have a competitive advantage. If Mumbai Indians looked at the same data as Royals, and made sure that a spinner was held back until Hodge came in to bat, they would be able to somewhat negate Hodge's effectiveness. Before long the quest to eliminate inefficiencies will merely keep teams from falling behind, instead of giving them a competitive advantage.



LA Dodgers manager Don Mattingly runs the show from the dugout, involving himself before nearly every pitch © Getty Images

This could play a big role in the kind of players that teams will select. Royals provide a glimpse into the future. Their decision to open the batting with Dravid (and later with Ajinkya Rahane) was the result of a combination of insights. The data showed that being 45 for 1 after six overs was better than being 60 for 3 at the same stage, and so Royals, according to Bharucha, "wanted someone who could hit good cricketing shots along the ground and pierce the gaps". Between 2011 and 2013, Dravid was an above-average IPL opener, scoring quickly and surely. After the Powerplay his scoring rate often dropped and his efforts to score at pace led to his dismissal far too regularly. Both Dravid and Bharucha told me that the idea of Dravid throwing caution to the wind after the sixth over, instead of trying to anchor the innings, was considered. The data suggested that it was more advantageous for Dravid to get out trying to score quickly than to develop his innings in the conventional sense after the Powerplay. In other words, it was better for Dravid to be replaced by a player who is, say, exceptionally good at hitting legspin, but not so good at other aspects of batting, or eventually by Hodge, the late-overs specialist hitter of pace.

It is possible to imagine a future where players develop their game in such hyper-specialised directions. The IPL already rewards players who are exceptionally skilled at hitting medium pace over the infield - though their game has not developed in other directions. Teams may soon try to ensure that these hyper-specialists are not used in situations that require other talents. Platooning - the idea of using specific players against specific opponents - is a time-honoured practice in baseball. Many baseballers focus on enhancing specific skills for specific situations - like left-hand relief pitchers going up against left-hand batters late in the innings.

When Bob Woolmer tried to get Hansie Cronje to wear an earpiece he was not merely ahead of his time, he was trying to subvert the architecture of the sport

This trend could create new opportunities in cricket. A journeyman Ranji Trophy middle-order batsman, who will never challenge Rahane for a slot in India's Test team, could work on one aspect of his attacking play to the exclusion of all others and become useful for his franchise as a hyper-specialist. The logical conclusion of Hodge's story would be for Royals to leave him out of the XI against a team playing no fast bowlers, even if he was in fantastic form. Instead they might select a local batsman who is extremely skilled at hitting spinners. The data might eventually show that a $35,000 local player is better than a $350,000 international in a big final.

Developing such hyper-specialists runs counter to generations of coaching wisdom. This tension came through in my interview with Bharucha, who was keenly aware of the different emphases involved in training a Test player and training an IPL specialist. Royals say that their ambition is to produce cricketers for India. But they need to balance the necessity of training specialists - to make the most of their limited resources - against producing well-rounded Test cricketers. Bharucha, a former first-class batsman who learnt his cricket under old-school coaches in Mumbai, points to the development and ambitions of Rahane, Sanju Samson, Stuart Binny and Karun Nair (who hit a triple-hundred in the 2015 Ranji final) as all-format players. "The way we teach and instruct," Bharucha wrote, "will always be to tighten technique and play quality cricket shots, even though it is T20 we are talking about. I feel coaching has always got to be something far deeper and must include the overarching goal of improving the quality of cricket played around the world."


The cerebral coach: John Buchanan's method revolved around making players accountable for their decisions on the field © AFP

Bharucha is aware of the contradiction. On the one hand Royals take a radical approach to batting. As he explained with regard to Hodge, "There are no batting numbers at Royals, only an over in which a batsman could potentially go in."

On the other hand, Bharucha also said, "At Royals one always weighs all of this up against the promotion of Indian talent, as year on year we look to shape the life and career of someone who could be a valuable contributor to the country. It's never just a shallow decision of who should bat where."

Winning in the IPL may well require cold-blooded platooning and the pursuit of hyper-specialists. But it would be a mistake to ignore the way longer currents of history shape the work of coaches and tacticians, whatever the data might say.

Acombination of technology and vast sums of money on offer has played a big part in creating the basis for a data-centred approach to tactics and specialisation. Some, like Bharucha and Buchanan, see data in match play and coaching as a boon. Buchanan visualises the role of the cricket coach evolving into one of a tactician and match-manager. But like all change, progress has been interrupted by older conventions and attitudes.

The use of logical inference based on observed fact to improve performance and make tactical choices is as old as the game itself. What is new is the type of data being collected


Compared to Bharucha, Buchanan met with less success in implementing his ideas at Kolkata Knight Riders. His attempt to rope in a fielding coach with a baseball background (John Deeble) wasn't as successful as his path-breaking use of Mike Young with the Australian side. During his two-year stint as director of cricket in New Zealand, Buchanan says, a couple of economists used a huge data set to produce an "in-game analysis which gave information to the coach and team what tactics should be employed on the next delivery or next few deliveries to control the game, and thereby influence the probability of winning". The idea never took off and was resisted by coaches and players.

Buchanan makes the point about how a data-based approach to on-field strategy requires players to be accountable for each of their decisions. If the coaches don't know exactly what a bowler is trying to do with a given delivery, it is impossible for them to know whether the bowler's plan was successful (irrespective of the outcome). "If we [the team and coaching staff] know what the set play looks like, then we are all tuned to how well that is executed." Buchanan says players are resistant to this kind of accountability, and perhaps also to giving up autonomy.

The central question teams need to tackle is whether or not a coach has a legitimate role as a tactician when a game is in progress. The architecture of cricket grounds sets up many constraints. During T20 games players sit in dugouts - an innovation borrowed from American sport and football. However, in baseball and football, the dugout serves a specific purpose: the coach or manager runs the game from there. Not only does Don Mattingly, the coach of the Los Angeles Dodgers baseball team, instruct his players before nearly every pitch, he also has an elaborate system of signs that is constantly updated so that it remains secret.


Peter Moores was criticised for being data-driven but so are many teams and coaches © Getty Images

In cricket, the relationship between those off the field and the active players has traditionally been distant. When Bob Woolmer tried to get Hansie Cronje to wear a earpiece he was not merely ahead of his time, he was trying to subvert the architecture of the sport. Cricket has traditionally had a different approach to accountability compared to baseball or football. This is no surprise. Baseball and football have been played for profit for far longer than cricket has, and consequently are mature big-money sports. It is unlikely that baseballers and footballers - often young men with little professional experience - are going to be left to their own devices when so much money is at stake. Every play has to be managed and every effort has to be made to get the most out of every play, or at least, teams need to be seen to be getting the most out of every play. Cricket may eventually get there but it will need both a change in attitudes, and there will need to be a means for coaches to get involved in each on-field decision.

The effectiveness of the use of cricket data is limited by how often new information can be conveyed to players and also by how often players can be substituted during a game. In baseball only nine players are in the game at any time, but each team's bench holds a further 16, of whom about 12 are usually available for use.

The use of match data in cricket is still in its infancy. Here is an example of software used by Cricket Australia (CA). It is developed by a company called Fair Play, and many cricket teams (franchise and international) use this system.


© Fair Play

Currently data is entered manually, in real time. The time available to make a record of each delivery is limited to the time it takes for the bowler to deliver the next one. As CA's Team Performance Information Manager Brian McFadyen observed in an email, it is much harder to capture data when spinners are bowling than when fast bowlers are bowling. A total of 166,006 balls were delivered in men's international cricket alone in 2014. Collecting data for 60 or 70 variables for each delivery would take about 5500 hours, assuming that it takes, on average, two seconds to record each variable. As you can imagine, this is an expensive and labour-intensive proposition.

Cricket might go the way of Major League Baseball's Statcast, a tracking technology used by many baseball franchises and now also available on broadcast. According to the MLB website, Statcast "collects the data using a series of high-resolution optical cameras along with radar equipment that has been installed in all 30 Major League ballparks. The technology precisely tracks the location and movements of the ball and every player on the field at any given time."

The data is mined using algorithms on the raw video data, and hence a large amount of data is captured for every single pitch. It is not only used by franchises for analysis but also in broadcasts to help fans develop a better understanding.

The use of data promises to change not only how cricket is played but also how it is watched and analysed. It is possible to foresee new types of television shows presenting data-based insights, and new types of fan engagements, like fantasy leagues, enhanced by the use of data. Perhaps conventional wisdom about risk-taking and probabilities of success will be refined. Today's television broadcast is littered with statistics like WASP, the Batting Index, the Bowling Index and the Pressure Index. What is missing is a critical mass of experts who are competent enough to discuss the merits of these measures and educate fans on how they work.

Instead of ambidextrous players - polymath super-cricketers - big data might produce mini-cricketers run by super-managers


The first decade of franchise-based cricket saw the language and grammar of long-form cricket being adopted wholesale to describe the new game. Spinners, we were told in the early days, were deceiving batsmen the same way they did in Tests. This despite the fact that batsmen were often of a different mindset facing spin in T20s than in the middle of a Test. It is now clear that the 20-over game has little in common with the longer versions, and perhaps the use of data to maximise each player's productivity will provide the impetus for a new language.

The larger question is how this will affect the way the game is played. Buchanan's dream of using data and technology to systematically develop ambidextrous players - polymath super-cricketers - may well have to give way to developing thousands of players who loft the ball better than Tendulkar ever could, but can't play the short ball at all. Instead of super-cricketers, big data might produce mini-cricketers run by super-managers.

We have already seen how things can go pear-shaped for super-managers. Peter Moores had two stints as England's head coach. Kevin Pietersen, the England captain during Moores' first stint, would later ridicule him for constantly emphasising metrics. In his autobiography Pietersen suggested that the central effect of all the data input was to irritate the players. Moores' second stint ended farcically when an innocent comment, after England were eliminated from the 2015 World Cup, was used as proof of his unhealthy obsession with data. The subtext was obvious: sport is played with heart and brawn, so who does this guy think he is to assume numbers are important? For fans humiliated by a big defeat, this type of chauvinism is too delicious to resist. Data - facts - would just complicate their catharsis.

At the same time, data is central to every team's preparation for matches. In an interview to the Cricket Monthly, Ricky Ponting observed that matters have reached a point now where every player has a laptop, and every player has to study before games. Whatever Moores' critics might say, every team pores over vast amounts of data and studies their opponents.

What remains to be seen is the effect of big data on cricket's evolution. Will the overall quality of the game improve? Will the coach emerge as match-manager and chief tactician? Will tomorrow's average cricketer be fitter, stronger, more skilful, more versatile than today's? Or, despite the best intentions of coaches, captains and players, will the data ensure that new types of tail-enders proliferate?

Time will tell.

Friday 28 August 2015

The Elite Opt-out - 'Government officials should send their children to government schools'

Manish Sabharwal in The Indian Express

Earlier this month, the Allahabad High Court gave the state chief secretary till the next academic session to require anybody drawing a government salary to send their children to only government schools. The order also specified that the promotions and increments of violators should be deferred, and required that any fees paid to private schools by government servants be deducted from their salary and paid into the state treasury. The judge felt this extreme step was the only way to improve government schools. Is this judgment absurd or wonderful common sense?

This judgment pulls me in two different directions because of who I am (son of government servants who sent me to a private school) and what I do (our company hires only 5 per cent of the children who come to us for a job because their schools let them down). Who I am believes this judgment is absurdity. What I do believes it is wonderful common sense. Why this divergence?

The first reaction is because this judgment violates the fundamental rights of all children of government employees by limiting where they can go to school based on their parents’ profession. I know my professional progress is a child of my private school education; I would not be where I am if I had been forced into a government school in Uttar Pradesh (where my parents are from) or in Jammu and Kashmir (where my parents worked). It’s also unfair to hold every present government servant accountable for the actions and outcomes of a small number of past and present education department bureaucrats. It hardly seems fair that the judgment should not be applied to past politicians who have grossly distorted government school-teacher recruiting, compensation and performance management, or past judges whose judgments have distorted the governance of educational institutions. The problem with holding the current government-employee cohort accountable for school outcomes is the long shadow cast by education policy decisions, where toxic effects show up only after a decade.

But my second reaction is rooted in a recognition of human nature. Wouldn’t Employee’s State Insurance hospitals improve if we forced government servants to use them and abolished their exclusive Central Government Health Scheme? Wouldn’t EPFO reform have happened years ago if every government servant was forced to deal with the organisation for their pensions? Wouldn’t ministers standing in line for security and boarding at airports have forced security forces to reduce lines by junking the meaningless stamping, and checking of stamping, of hand baggage tags and boarding cards? Wouldn’t there have been more urgency for power reforms if distribution companies were prohibited from creating VIP areas where power is uninterrupted? Wouldn’t we have better urban planning, housing and public transport if government servants were not given houses and cars and all their benefits were monetised instead?

Given India’s poor service-delivery outcomes; it’s certainly a tantalising possibility to subject government servants to the consequences of their actions. This judgment is obviously the product of an interesting mind — Justice Sudhir Agarwal — but it is also a child of broader trends in society and merely reflects the rising aspirations and expectations of millions of Indians. India’s poor and youth are no longer willing to be held hostage to poor government provision. They recognise that “elite opt-out” accelerates the decline of the public system because powerful and loud voices don’t care. My parents retired to Kanpur, where the fastest growing industries are private bottled water, private security, private generators, private healthcare and private schools; the poor in UP are buying what should be public goods because their rights as consumers are greater than their rights as citizens. India is reaching the point where government sins of commission (what it does wrong) are not as toxic as government sins of omission (what it does not do). Alexander Hamilton wrote that the courts are the weakest of the three branches of government because they control neither sword nor purse. India’s courts cannot sustainably fix public service-delivery. Government schools can only be fixed by politicians obsessed with execution, not inputs.

The execution problem goes beyond schools. The Indian state has been designed for less complexity, scale and accountability than it faces. Going forward, the state must do fewer things, but do them well. It must retreat where the market works but act muscularly where the market fails. It must separate its role as policymaker, regulator and service-provider in all areas. It must create the hope of rising and fear of failing for the permanent generalist civil service and supplement them with specialist lateral entry. Fixing government schools is crucial to economic democracy; I work for a company that has hired somebody every five minutes for the last five years, but only hired five per cent of job applicants. You can’t teach kids in one year of vocational training at the exit gate of K-12 education what they should have learnt in the 12 years of school. An unskilled or unemployed Indian is not a free Indian. So — with all the hypocrisy of somebody whose turn for a government school education under this judgment is past — I hope the wonderful common sense that this judgment represents is upheld.

Monday 28 July 2014

How we misunderstand risk in sport

Aggression, defence, success, failure, innovation - they are all about our willingness to take risks and how we judge them
Ed Smith in Cricinfo 
July 28, 2014

Same risk, different outcome: when a batsman goes after a bowler, he could end up being dismissed or hitting a six © Getty Images

The World Bank recently asked me to give a speech at a forum in London called "Understanding Risk". Initiall, I was unsure how I could approach the subject. How could I, an ex-sportsman turned writer, address financial experts on the question of risk?
On reflection, I realised there is another profession, followed around the world and relentlessly scrutinised, that relies almost entirely on the assessment of risk. Without risk, there can be no reward. Without risk, there are no triumphs. Without risk, there can be no progress.
And yet this entire profession, this whole sphere of human endeavour, doesn't really understand risk at all. It uses the term sloppily, even incorrectly. It criticises good risks and celebrates bad risks. It cannot distinguish between probabilities and outcomes.
It has changed its approach to risk, swapping one flawed approach for the opposite mistake. In the old amateur days, when it was run and managed like an old boys' club, there was little or no calculation of risk - merely unscientific anecdotes and old wives' tales. But the brave new dawn of social science didn't prove any better. In fact, it might be even worse. People put too much faith in maths, metrics and quantification. It has lurched from old boy's network to a pseudo-science - without pausing en route where it ought permanently to reside: with the acknowledgment that risk requires subjective but expert judgement. There is no perfect formula. If there was, everyone with a brain would succeed.
The sphere I describe, of course, is not finance or banking but professional sport. Sporting strategy - sometimes analytical and planned, sometimes instant and intuitive - always revolves around the assessment of risk. Taking risks is what sportsmen do for a living. And yet the analysis of risk does not match this practical reality. We usually talk in clichés not truths, often criticising good risks and praising bad risk-taking.
Here are four ways the sports world often misinterprets risk.

Risk is everywhere

In cricket, every attacking shot played by a batsman carries an element of risk, no matter how small. Stop playing shots and you cannot score runs. "You miss 100% of the shots you don't take," as Wayne Gretzky, the greatest ice hockey player of all time, put it.
And it is amazing when you stop playing attacking shots how much better bowlers bowl. Effective risk-taking has an intimidatory effect. Total risk-aversion the opposite: it emboldens your opponent, making him feel safe and relaxed.
In football, when a midfield player advances up the pitch, he is trying to orchestrate a goal while also reducing his own team's defensive protection. In risking creating a goal, he increases the risk of conceding one. Defenders, too, constantly weigh risks. Pressing the opposition, trying to get the ball back from them, is a risk. In moving up the pitch without possession, you create space behind you - if they are good enough to keep the ball and get past you.
But the alternative - safety-first defending - brings risks of another kind. If you never press, and always retreat into the safety of deep defensive organisation, then you rarely regain the ball. You dig your own trench, unable to threaten or frighten the opposition, merely sitting there waiting for the next wave of attack.
Tennis is all about risk. With your groundstrokes, if you are determined never to lose a point by hitting the ball long, not even once, then sadly you won't play with enough depth to make life difficult for your opponent. You will make zero errors and still lose.
And when it's your turn to return, if you never run round your backhand in the hope of hitting a forehand winner, then you will allow your opponent to settle into a comfortable serving rhythm. In the pursuit of good returning, you have to risk getting aced. You have to risk failure in the short term to give yourself a chance in the long term. You have to dare to be great.

Being right is not the same thing as events turning out well

You can be right and fail. You can be wrong and succeed.
Sport is about problem-solving. And the best way to discover new, better methods is to allow people to experiment through trial and error. Don't see what everyone else is doing and copy it. Find a better way
Sport rarely allows for this. We say that winning "justified the decision", a classic failure to distinguish between ex ante and ex poste thinking. Instead, the real question should be: would I do the same thing again, given the information I had at the time? Coaches and captains often make the right calls and lose. And they often make the wrong calls and win. It is stupid to judge a man's judgement on a sample size of one event.
The same point applies to risks taken by players. An unthinking tribal fan will shout "hero" when a risk-taking batsman hits a six, then scream "idiot" when the same shot ends up in a fielder's hands.
What a champion to take on the bowler! What a fool to take such a risk! The inconsistency here is not the batsman's, it is the spectator's. Coward/hero, fool/champion, disgrace/legend. The same risk can lead to either assessment.

Many crucial risks are invisible 

There are risks that no one sees that still have to be taken. Critics delude themselves that the only form of bravery in sport is guts and determination. At least as important is nerve, or, put differently, the capacity to endure risk imperceptibly.
When I was commentating with Sourav Ganguly at Lord's last week, he told me that Virender Sehwag used to shout, "He missed a four!" while he was in the dressing room watching team-mates batting. Ganguly quite rightly added that missing an opportunity to do something good is just as much of a mistake as making a visible error.
Many teams imperceptibly yield an advantage through timidity, fearfulness, and anxiety about standing out for the wrong reasons - an advantage they never subsequently reverse.
During the last Ashes series, I used this column to develop the metaphor of looking at sport as an old-fashioned battlefield. As the front lines engage and each army tries to advance, the direction of travel will be determined by tiny acts of skill and bravery - and equally imperceptible acts of risk aversion.
Somewhere on the front line, an infantryman inches a foot closer to his ally, hiding his own shield slightly behind his friend's. Hence one man becomes fractionally safer - but if the action is repeated a thousand times, the front line becomes significantly narrower and weaker as a whole. No one individual can be singled out as a hopeless failure. But the group suffers a collective diminution.
So it is in sport. When a batsman fails to hit a half-volley for four because he is too cautious, an opportunity is wasted to exploit an advantage offered to his team.
We talk a great deal about momentum, but not enough about how momentum is created. Once the whole army is retreating, even the bravest soldiers can fail to hold the line. We talk of courage when the tide has already turned. So in place of the usual clichés, "out-fought", "out-toughed", "out-hungered", I have a simpler word: outplayed. Or, even better, "quietly, perhaps indiscernibly, defeated by superior risk-taking".

The essential risk of being prepared to look silly

This is how sport moves forward. In 1968, a professional athlete had a crazy idea. Madder still, he had this idea just before the tournament event of his life. He wanted to rip up the coaching manual and do it all his own way. His coaches told him to forget about it, to stick with the old way of doing things, not to rock the boat.
He ignored them. He was a high-jumper, and he instinctively wanted to go over the bar head first, back down - not, as everyone else did, leg first, face down. At the 1968 Mexico Olympics, despite everyone telling him he was mad, he went ahead with his revolutionary technique. And how did it work out? He won a gold medal and set a new world record. He was called Dick Fosbury and he'd just invented the Fosbury Flop.
Sport is about problem-solving. A challenge is set: kick the ball into the net; hit the ball over the boundary; jump over the bar. From then on, solutions evolve, sometimes deliberately, sometimes by accident. And the best way to discover new, better methods is to allow people to experiment through trial and error. Don't see what everyone else is doing and copy it. Find a better way.
The left-field question is the one to ask. Why shouldn't I jump over the high-jump bar head first? Why shouldn't I aim my sweep shot towards off side where there aren't any fielders (the reverse sweep, the switch hit)?
Sport moves forward when it is irreverent, resistant to authority. The greatest cricketer of all time, Don Bradman, used a technique that no one has dared to try out a second time. His bat swing started way out to the side, rather than as a straight pendulum line from behind him.
Let me repeat. The method that made Bradman one and a half times better than the second-best player was consigned to the rubbish bin of sporting ideas. Bradman was prepared to look stupid by risking a unique rather than textbook technique. Others have been unwilling or unable to follow.
Bradman, however, benefited from one huge slice of luck. He escaped the greatest risk that can befall any genius: formal education. He learnt to bat on his own, using the empirical method, without a coaching manual. As a child he would repeatedly hit a golf ball against the curved brick base of his family's water tank.
Here is a startling thought. How many Bradmans were persuaded to try the usual technique? How many Fosburys were talked out of taking a chance?
In the course of trying to be different and better, you have to bear the risk of being different and worse.