polling

It has been a rocky road for Republican presidential candidate Mitt Romney since we last checked in on the polls, and the money is starting to lose faith in the challenger.

The Iowa Electronic Market from 8/23 through 9/25:


As of the end of trading on September 25, the disparity in contracts between Romney and US President Barack Obama was at an all-time high. The polls tell a similar, albeit more muted, story. 

Presumptive Republican presidential nominee Mitt Romney’s announcement on August 11 of Paul Ryan as his running mate drew a variety of responses, including cheers, jeers and even some comparisons to John McCain’s choice of Sarah Palin in 2008.

But for all the media fervor over Ryan and his controversial budget plan, the polling response has been muted compared to 2008. The Real Clear Politics poll shows  Romney narrowing the gap from 4.6 points to 2.8 since the August 11 announcement.

But compared to 2008, the bump from Ryan looks inconsequential. Nine days after  McCain announced Palin as his running mate, the GOP hopeful had not only erased a 3.9 point deficit, he had taken a narrow 1 point lead.

 

By Jason Abbruzzese

Who will you (or would you) vote for in the 2012 presidential election? Now let’s say you have $10 to bet on a winner of the election. Is the answer the same?

Maybe, maybe not. What matters is that those are two different questions, and the results from the answers give us two very different sets of data. Polling has long been used as an implicit indicator of the likelihood of a certain outcome.

(AP) President Harry S. Truman holds up an Election Day edition of the Chicago Daily Tribune, which, based on early results, mistakenly announced "Dewey Defeats Truman" on Nov. 4, 1948.

So polling is not perfect, but what’s the alternative? For people looking to hedge positions against the likelihood of one president over another, the wisdom of the market could be one answer.

The University of Iowa’s predictive markets, specifically the Iowa Electronic Markets 2012 Presidential Election Winner Take All contracts, (IEM) is one attempt to measure it.

The IEM is a futures market in which people can take positions based on certain outcomes. In this blog series we’ll be comparing the Real Clear Politics poll and the IEM Winner Take All to see how they deviate – or converge.