Daily Archives: October 23, 2007

Tiger’s peer effect

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uncle-tiger-wants-you.jpgAll those PGA Tour players who have folded like limp dish rags while paired with Tiger Woods over the years will be a bit skeptical of the conclusions of this recent study (H/T to Tim Harford):

This paper uses the random assignment of playing partners in professional golf tournaments to test for peer effects in the workplace. We find no evidence that the ability of playing partners affects the performance of professional golfers, contrary to recent evidence on peer effects in the workplace from laboratory experiments, grocery scanners, and soft-fruit pickers. . . . We offer several explanations for our contrasting findings: that workers seek to avoid responding to social incentives when financial incentives are strong; that there is heterogeneity in how susceptible individuals are to social effects and that those who are able to avoid them are more likely to advance to elite professional labor markets; and that workers learn with professional experience not to be affected by social forces.

In other words, PGA Tour pros do not generally suffer from peer effects. Except while playing with Tiger Woods, that is. ;^)

Ben Stein’s worst nightmare

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Ben%20Stein%20102307.jpgFirst, Larry Ribstein became NY Times business columnist Gretchen Morgenson’s worst nightmare by exposing the vacuous nature of her columns.
Now, Felix Salmon has become part-time NY Times business columnist Ben Stein’s worst nightmare (see also here) in much the same way:

Stein’s main point is that reality is fine; it’s just the media which is making things look bad. “Newspapers (which often sell on fear, not on fact) talk frequently about a mortgage freeze,” he says. Although if you do a Google News search on “mortgage freeze”, you find exactly one newspaper article: this one, by Stein. Meanwhile, he says, and I swear I am not making this up, “there is still a long waiting list for Bentleys in Beverly Hills”. Well in that case there couldn’t possibly be a housing crisis!
“This country does not look like a country in economic trouble,” concludes Stein. Well, maybe if you live in Beverly Hills and you have lots of money invested in the stock market, then that might seem to be the case. But Stein doesn’t seem to consider that most Americans might not fall into that category.

Read the entire post. Do the Times editors even review Stein’s blather before publishing it?

Sizing up the 2007 World Series

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fenway_park.gifThat northern breeze you felt in Houston yesterday was actually a huge sigh of relief heaved by Major League Baseball and network television executives on Sunday night as the Boston Red Sox beat the Indians in Game 7 of the American League Championship Series to advance to the 2007 World Series against the National League champion Colorado Rockies. Nothing against Cleveland, but the TV ratings of a Cleveland-Colorado World Series would have been about the same as a non-major PGA Tour event.
A few tidbits about this year’s series:

The opening day payroll for 25-man roster of Colorado Rockies was $54,424,000, while the opening day payroll for the Red Sox was $143,026,214. The highest paid Red Sox player is LF Manny Ramirez at $18 million per year, while the Rockies’ highest paid player is 1B Todd Helton at $16.6 million annually.
The Rockies have played only two series at Fenway, one in 2002 and one this past June during interleague play. Colorado outscored Boston 20-5 in winning two of three during during that latter series.
The Rockies have won 10 straight games and have won 21 of 22, but the eight days they have had off in-between postseason games is the longest such break in the history of Major League Baseball. The Rockiesí 10-game winning streak entering the World Series is also impressive, but not the longest streak coming into a World Series. The 1960 Yankees had a 15-game streak and the 1970 Baltimore Orioles had a 14-game streak. The Rockies are the ninth different team to represent the National League in the World Series over the past 10 seasons, and the seventh wild-card pennant winner over all in the past six years.
Red Sox hitters scored 61 more runs than an average American League club would have using the same number of outs (RCAA, explained here) and Red Sox pitchers saved 163 more runs than an average American League pitching staff would have saved in the same number of innings (RSAA, explained here). In comparison, Rockies hitters generated a solid 41 RCAA and the club’s pitchers produced a respectable 78 RSAA. Thus, based on regular season statistics, the Red Sox are the clearly superior club, but Colorado has the advantage of being hot when it counts, although one has to wonder how much of the Rockies’ winning edge wore off during that eight day layoff. A pdf of the player statistics for the two clubs is here.

Finally, for disappointed Indians fans, this insightful Russell Roberts post reminds us that failure — even in baseball markets — is often a necessary precursor of success.