Prediction Markets Defy Polls
May 11, 2020
Polling data is still thin, but there have been three recently-conducted polls for a general election faceoff between Biden and Trump. Monmouth, The Economist, and CNBC all have published results as recently as May 6th -- and all three have Biden showing a lead over Trump. As of May 11th, prediction markets Betfair, PredictIt and PredictWise remain unbudging with Trump showing a lead over Biden. This is the first unmistakable disconnect of the season between polling and prediction markets.
This disconnect seems to hold even if you zoom out and look at a wider sample than just these three polls and three prediction markets. As of May 11, 2020, the Real Clear Politics national average of polls shows Biden with a +4.4 spread, while their Betting Odds
average shows Trump with an 8.1 point lead for Trump. Even this early in the season, one has to wonder why there is a healthy 12 point gap between what the polls are saying and how people are actually betting with real money. Nate Silver's fivethirtyeight.com site is not currently showing a spread on their main politics page, opting instead to run Trump's Presidential approval number, currently 44%. We already know that metric has marginal utility, as Barack Obama's approval percentage in May of 2012 hovered around 47%, and he ended up sailing to an easy victory that November.
Sanders Out, Betting Odds Unchanged
April 16, 2020
A great deal has happened in the last two weeks. Bernie Sanders suspended his campaign, much to the surprise of his supporters, making Joe Biden the presumptive nominee for the Democrats. The Democratic National Convention was moved to August 17th to give the planners more time to monitor what happens with Coronavirus. The first stimulus payments started getting to taxpayers with direct deposit information on file with the IRS. The US stock market indices have recovered a bit of their losses, and there has been good news on the numbers front in the battle against COVID19. Through all of this, the prediction markets have basically signaled that this information was already priced into most forecasts - barely budging at all. Trump maintains a 5 point edge on PredictIt, Betfair gives him a 54.6% chance of winning, and PredictWise has Trump holding steady at 54%.
Of note is that none of these figures registered even a small blip upon two prominent Biden endorsements, those of Sanders himself and former President Barack Obama. Also notable is that Trump's chances of re-election have barely budged despite a bounce in his approval numbers. All of this suggests that forecasters are still starved for data to make a meaningful prediction, and despite the busy appearance of the last two weeks, most of it was fully anticipated.
Trump Holds On To 54% Chance of Win
April 2, 2020
We're a solid two to three weeks into the Corona Virus shutdown and there has been some back-and-forth on a few of the prediction markets -- but not as much as you'd think. Donald Trump has maintained a 54% chance of re-election on Predictwise, a 49% chance on PredictIt, a 52% chance on BetFair, and HyperMind gives him 48%.
2020 Season Kickoff
March 18, 2020
ElectoralMap.net is now live for the 2020 election season. As usual, the House, Senate, and Governor's races will be tracked in addition to the battle for the Presidency. The forecasts will be based on an amalgam of curated and weighted polls and prediction markets. Find out more about which data sources will be used by following regular posts here.