Sunday, March 31, 2013

A few brief thoughts on Timothy Noah's reaction to the firing of Timothy Noah

I didn't really have any strong feeling about the firing of Timothy Noah, but when I came across this Politico excerpt in Talking Points Memo, it seemed rather odd to me.
“Once, shortly after he bought it, he said he liked a piece I'd written advocating an energy tax,” Noah wrote. “Another time, after I wrote a piece about Jim DeMint's departure from the Senate headlined 'Requiem For A Wingnut,' he emailed me to say ... wait, I've got it here: ‘I have little esteem for Jim DeMint, but I also want us to make a rule of not name-calling in headlines. We have strong opinions, but name-calling so outrightly undermines the seriousness of what we are trying to do here.’”

“I quietly changed the headline to the somewhat clumsy, ‘Farewell, Filibusteringest Senator’ and quietly worried whether the magazine's new owner (who around that time also told an audience at the Kennedy School that he'd like to co-brand a chain of cafes called the New Republic) might be a young man with more money than sense,” he said.

And, he added, “my firing is an additional data point.”
I've read this over a few times and it still seems a bit strange. A publisher told a writer to tone down a title. There was nothing particularly special about the title and the the publisher gave a reasonably sounding explanation for why he wanted the change. This bothered the writer enough to cause him to worry about the publisher's competence and to later use it as the basis of a very public criticism.

I realize that Noah may be understandably angry, but even factoring that in there seems to be a weird disconnect here, as if, when he tells me that a publisher changed one of his titles, he expects me to conclude that there's something wrong with the publisher. It's not immediately clear to me that the publisher was wrong, either about this particular title or about the policy of avoiding taking shots in a title, but even if the publisher were clearly wrong, it would still strike me as part of the normal friction of putting out a magazine.

I also get the feeling that Mackenzie Weinger, the author of the Politico piece, had the same reaction as Noah, especially given the snark about the New Republic cafes. (two quick points: first, speakers at events like this are expected to toss out big, interesting, out-of-the-box ideas like co-branding seemingly unrelated businesses; second, weird co-branding ideas are common. By the standards of the field and in the context of the speech, this suggestion wasn't particularly outrageous.)

What makes this more interesting than just than just another case of an ex-employee griping about a former boss is the way it supplies what Noah might call an additional data point for some ongoing concerns about the state of journalism, the idea that the profession has a problem with arrogance and tribalism.

To the tribalism point, this is the second time in recent memory when Politico's Media column has uncritically taken the side of Washington journalistic insiders (such as Noah) against outsider (such as Hughes). It was the Media column where Dylan Byers went after Nate Silver because, to be blunt, he was making the the DC journalism insiders look bad and, more to the point, expendable.

And having journalism critics who uncritically take the side of other journalists is not a good thing.

Friday, March 29, 2013

Do the connotations of "property" influence the "intellectual property" debate?

Tim Taylor has a great post on the history of the term "intellectual property" and the way wording may be shaping our thinking. (via Thoma)
Mark Lemley offers a more detailed unpacking of the concept of "intellectual property" in a 2005 article he wrote for the Texas Law Review called "Property, Intellectual Property, and Free Riding" Lemley writes: ""My worry is that the rhetoric of property has a clear meaning in the minds of courts, lawyers and commentators as “things that are owned by persons,” and that fixed meaning will make all too tempting to fall into the trap of treating intellectual property just like “other” forms of property. Further, it is all too common to assume that because something is property, only private and not public rights are implicated. Given the fundamental differences in the economics of real property and intellectual property, the use of the property label is simply too likely to mislead."

As Lemley emphasizes, intellectual property is better thought of as a kind of subsidy to encourage innovation--although the subsidy is paid in the form of higher prices by consumers rather than as tax collected from consumers and then spent by the government. A firm with a patent is able to charge more to consumers, because of the lack of competition, and thus earn higher profits. There is reasonably broad agreement among economists that it makes sense for society to subsidize innovation in certain ways, because innovators have a hard time capturing the social benefits they provide in terms of greater economic growth and a higher standard of living, so without some subsidy to innovation, it may well be underprovided.

But even if you buy that argument, there is room for considerable discussion of the most appropriate ways to subsidize innovation. How long should a patent be? Should the length or type of patent protection differ by industry? How fiercely or broadly should it be enforced by courts? In what ways might U.S. patent law be adapted based on experiences and practices in other major innovating nations like Japan or Germany? What is the role of direct government subsidies for innovation in the form of government-sponsored research and development? What about the role of indirect government subsidies for innovation in the form of tax breaks for firms that do research and development, or in the form of support for science, technology, and engineering education? Should trade secret protection be stronger, and patent protection be weaker, or vice versa?

These are all legitimate questions about the specific form and size of the subsidy that we provide to innovation. None of the questions about "intellectual property" can be answered yelling "it's my property."
You could go further and argue that copyrights and patents actually restrict property rights. since they limit what people can make and sell. This aspect has caused some notable libertarians to voice concerns about the seemingly inexorable expansion of these government-granted monopolies.

Some similar issues are raised by the different meanings of the term "rational." "Rational" means something very specific when used in the context of economics. All sorts of behavior we would normally consider rational is irrational in the economics sense. Unfortunately, some economists have used the negative connotation we associate with "irrationality" in its general usage to argue against decisions that are irrational only in the strict technical sense..








Some people just insist on being tied to their possessions

Joseph appears to have had somewhat mixed feelings about this New York Times piece by Graham Hill, a multi-millionaire preaching the freedom of not getting tied down by your possessions. Joseph wondered how this philosophy might work for people on the other end of the spectrum

Assuming things haven't changed greatly since 2003, you can probably get a pretty good idea from this LA Times story from Carla Rivera about a service that provided storage bins for the homeless:
At 7:45 on a recent morning, the nondescript building looked as busy as a checkroom at an airport or train station, with a line of people hauling backpacks, duffle bags and grocery carts.

Chris Thorn, 47, was sorting through a brown leather satchel on rollers, pulling out thick sweaters and other winter clothing to store in anticipation of warmer weather.

Thorn said she has been homeless for a year and has been staying at the Midnight Mission, where there is limited space for belongings.

"It's especially important to have someplace to store clothes for when you get a job," said Thorn, who says she occasionally does painting and construction work.

Nearby, Ruby Simmons, 61, struggled to maneuver a grocery cart overflowing with blankets, sofa pillows, purses, comforters, books, toiletries, an umbrella and a knob-ended, sturdy stick that she said is useful for walking or protection.

Even after filling a bin, Simmons had a cart full of blankets, clothing and her westerns and mystery novels to keep with her.

Simmons was nonplused when asked what she considered the most important of her belongings, some of which she has had since moving from Missouri more than 30 years ago.

"I got the pillows from a minister who was giving stuff away. You'd hate to lose any of it," said Simmons, who has been homeless off and on for years and was recently living on the street. She said she hopes that, in another year, when she reaches retirement age, Social Security will provide enough for a hotel room or apartment.


Graham Hill

I have some aspirations to be a bit of a minimalist.  But I was struck by the New York Times piece by Graham Hill.  In it, a multi-millionaire talks about how he was able to live a life of freedom wandering around the globe and how possessions were a chain.  The correct response to this piece is to ask how it would have worked out if he had decided that his cash assets were also a fetter

Based on anecdotal evidence from talking to homeless people, I suspect it would not have been fantastic.  Consider this episode:

But I was just going along, starting some start-ups that never quite started up when I met Olga, an Andorran beauty, and fell hard. My relationship with stuff quickly came apart.

I followed her to Barcelona when her visa expired and we lived in a tiny flat, totally content and in love before we realized that nothing was holding us in Spain. We packed a few clothes, some toiletries and a couple of laptops and hit the road. We lived in Bangkok, Buenos Aires and Toronto with many stops in between.
 
Travel is an extremely expensive luxury.  With a decent career I still have to work to scrape up the money to visit my very geographically dispersed family and friends.  I think few people without financial assets would be able to simply pick up and live in a succession of expensive, world-class cities.  Again, my homeless person surveys are strictly anecdotal, but beautiful women or dashingly handsome men as companions seem absent from their accounts of living rough. 

As for being poor, it made a huge difference for my freedom in the periods of my life that I had the cash to compensate for mistakes or broken things.  It's much less of a sacrifice to live in a studio apartment if you can rent a suite at a local hotel whenever it gets claustrophobic. 

It is fine to be able to make the decision to have few possessions.  It is completely different to not have a choice in the matter. 



Wednesday, March 27, 2013

Recommended Reading

See here for a discussion on a recent paper on health inequality.

 The best sentence in the blog post? 

Cynics may spot the benefit of such an approach for those at the top of the income distribution…

Intellectual Property

Mark Thoma points us towards a potentially really important finding:

By linking a number of different datasets that had not previously been used by researchers, Williams was able to measure when genes were sequenced, which genes were held by Celera's intellectual property, and what subsequent investments were made in scientific research and product development on each gene. Williams' conclusion points to a persistent 20-30 percent reduction in subsequent scientific research and product development for those genes held by Celera's intellectual property.
 
As we have long discussed on this blog, the justification for intellectual property is to encourage and promote innovation.  There has long been a concern that the innovation would have happened with or without the patent (software patents are a good example of this phenomenon) but a general consensus that the profits from patents increase innovation (due to the rewards generated by a successful innovation).  However, if the granting of a patent were shown to decrease innovation then the argument for granting them would be weakened.

If granting a patent reduces future innovation and the patented innovations would have occurred with or without the patent then the patent process becomes pure rent seeking.  It's clear that these two conditions do not universally hold (i.e. medication discovery as currently constructed is too expensive without a clear path to future profits).  But the possibility that this could be true for same areas of technology is a sobering thought indeed. 

Tuesday, March 26, 2013

New advice column

Emily Oster has an advice column.  Read here.

It contains an excellent explanation of opportunity cost with respect to child rearing.   

Sunday, March 24, 2013

Libertarianism

Chris Dillow is strident:
Instead, I suspect what we see with her and with Ukip - and, one could argue, with some who support press regulation whilst favouring social liberalism in other contexts - is asymmetric libertarianism. People want freedom for themselves whilst seeking to deny it to others; this is why some Ukippers can claim to be libertarian whilst opposing immigration and gay marriage. This debased and egocentric form of libertarianism is more popular than the real thing.
But I think he might be on to something.  I have long wondered why Libertarians focus on certain positions (e.g. taxation) and not others (e.g. prisons).  I am not saying all Libertarians focus on taxes and no Libertarian is worried about the criminal justice system.  That would be a straw man version of the argument.

It is more that the attention to these issues seems to be rather selective.  Not all of them: I can find individuals with consistent positions on the hot button issues like drugs, criminal offense, personal freedoms and so forth.  But the focus on, for example, lowering taxes seems much stronger than the focus on reducing the prison population.  Or at least that is one outsiders view.

Weekend movie blogging -- meta spoilers

I was starting to write a post about an old but nicely done 70s movie of the week (Ed Asner, Cloris Leachman and Lloyd Bridges all doing good work but -- God help me -- it's Robert Reed who knocks it out of the park in his big scene). I was specifically interested in the odd way the writer handled the big reveal, having characters start to speculate about it in the middle of the film.

I started to contrast it with a Henry Fonda film that ends with a with a masterfully executed blindside twist but I realized that simply by saying ____ has a great surprise ending I could spoil the film. You might not guess the ending but knowing something was coming could keep you from buying into the story. When the rug was pulled out you'd already have one foot off of it.

Likewise, an Ira Levin novel I was also going to use as an example derives much of it effectiveness from the skillful way the writer slips something very big past you without putting you on your guard, If I tell you Levin pulls a fantastic narrative trick in ____, there's a much better chance that he won't pull it off.

The idea that simply telling someone that there's a spoiler can be a spoiler reminded me of a class of puzzles where before you can solve the puzzle you have to know if you have enough information to solve the puzzle. These are discussed at length by Raymond Smullyan in What Is the Name of This Book. I'll try to dig up my copy and update the post with some examples.




Friday, March 22, 2013

75 years of progress

While pulling together some material for a MOOC thread, I came across these two passages that illustrated how old much of today's cutting edge educational thinking really is.

First from a 1938 book on education*:
" Experts in given fields broadcast lessons for pupils within the many schoolrooms of the public school system, asking questions, suggesting readings, making assignments, and conducting test. This mechanize is education and leaves the local teacher only the tasks of preparing for the broadcast and keeping order in the classroom."
And this recent entry from Thomas Friedman.
For relatively little money, the U.S. could rent space in an Egyptian village, install two dozen computers and high-speed satellite Internet access, hire a local teacher as a facilitator, and invite in any Egyptian who wanted to take online courses with the best professors in the world, subtitled in Arabic.
I know I've made this point before, but there are a lot of relevant precedents to the MOOCs, and we would have a more productive discussion (and be better protected against false starts and hucksters) if people like Friedman would take some time to study up on the history of the subject before writing their next column.



* If you have any interest in the MOOC debate, you really ought to read this Wikipedia article on Distance Learning.

Wow, just wow!

Via Thomas Lumley:
You may have heard about the famous Hawthorne experiment, where raising light levels in a factory improved output, as did lowering them, as did anything else experimental. The original data have been found and this turns out not to be the case.
The mind boggles at just how often I have used this example and how wrong it was.  I have read the paper once, not that closely, but the overall impression I have is that Levitt is correct here. 

Thursday, March 21, 2013

Cloud computing


Kevin Drum
What's different is that Google's products are all cloud-based. When Google Reader goes away on July 1, that's it. It's gone. If it were an ordinary bit of software that I'd installed on my PC, this wouldn't be a problem. It would keep on working for years even if it never got another update. I'd need to replace it eventually—because of an OS upgrade or a desire for new features that finally got too strong—but I'd probably have years to work that out.
 
I think that this element of the new model of software is worth a lot more attention then it is getting.  Just look at the sim city fiasco and ask what would happen if Microsoft made the same mistakes with a new cloud version of Office.  Now Microsoft is an extraordinarily well run company, so the chances of that are quite small.

But the general trend towards renting access is going to make interuptions of service (or just the internet misbehaving) a much bigger deal. 

Wednesday, March 20, 2013

Apple, J.C. Penney* and fitness landscapes in everything

James Kwak has an excellent piece on Ron Johnson's unfortunate run as CEO of J.C. Penney.
According to today’s Wall Street Journal article, Johnson quickly eliminated coupons and most sales at J.C. Penney.

“Johnson bristled when a colleague suggested that he test his new no-discounts strategy at a few stores. . . . ‘We didn’t test at Apple,’ the executive recalled Mr. Johnson . . . saying.”

Well, yeah. Apple doesn’t discount because they sell stuff that people really, really want and that they can’t get anyplace else. And they don’t test because Steve Jobs refused to. At Penney? Sales have fallen by about 30 percent.

This doesn’t mean Johnson is stupid, or that he’s going to fail as CEO. Apparently he has partially reversed his early decision, which is a good sign. But it brings up a common feature of external CEO hires. Companies in a perceived crisis often look outside for a new leader, hoping for a superman (or -woman) who can singlehandedly turn around the organization. Not completely illogically, they tend to look for people at successful companies. “Make us more like X,” they pray. In Penney’s case, X = Apple.

There are two important questions they tend not to ask, however. First, was Apple successful because of Johnson, or was he just along for the ride? Yes, he was the main man behind the Apple Store (although, according to Walter Isaacson’s book, Steve Jobs was really the genius behind everything). But was the success of the Apple Store just a consequence of the success of the iPhone?

Second, even if Johnson was a major contributor to Apple’s success, how much of his abilities are transferable to and relevant to J.C. Penney? There’s a big difference between selling the most lusted-after products on the planet and selling commodities in second-rate malls. When someone has been successful in one context, how much information does that really give you about how he will perform in a new environment?
The obvious interpretation here is as a cautionary tale of executive hubris, but you can also look at it in terms of fitness landscapes (the following will be fairly straightforward, but if the concept doesn't ring a bell you might want to check herehere, and of course, here).

Let's try thinking in terms of the retail fitness landscape (presented with the usual caveat that I'm way out of my field). Just how distant is the Apple Store from J.C.P.?

Apple Stores are a relatively small boutique chain (400 stores total, 250 in the U.S.) concentrated heavily in prime commercial urban and upscale suburban areas. Their customer demographics tend toward upper income, fashion-conscious early adopters with a demonstrated willingness to pay a premium for quality. Inventories consist of a few heavily-branded, high-quality, high mark-up items, all of which come from one very visible supplier with an excellent reputation. This allows an unusual (perhaps unique -- there's not another Apple) symbiotic relationship. The stores give the supplier a presence and a profit center while the stores benefit from the supplier's powerful brand, large advertising budget and unparalleled PR operation.

In terms of customers, products, brand, retail space, vendors relations, logistics, scale and business model, moving from the Apple Store to JCP was a shift to a distant part of the retail landscape. What Johnson did, in essence, was say "these coordinates are associated with an extremely high point on the landscape (the Apple Store). Even though we've made large shifts in many of these dimensions, we can keep the same coordinates for the other dimensions and we'll find another optima."

To put this in context, here's a useful example from T. Grandon Gill
Suppose, for example, you had a fitness function that mapped the list of ingredients to an objectively determined measure of “taste fitness” for all the recipes in a cookbook. If you were to do a regression on taste (dependent variable) using the ingredients (independent variables), you might find—for instance—that garlic shows a high positive significance. What would that tell you (other than, possibly, that the individuals rating the recipes enjoyed garlic)? What it would definitely not tell you is that you could improve your recipe for angel cake by adding garlic to it. Indeed, the whole notion of applying a technique that assumes linear decomposability to a fitness landscape that is so obviously not decomposable is preposterous.
Substitute a low level of coupons for a high level of garlic and you have a pretty good picture of the JCP strategy.

How do we know the retail landscape is rugged? We don't, but we do have considerable evidence that certain approaches work better in some circumstances than they do in others (i.e. there are multiple local optima). More to the point, Johnson's entire strategy pretty much assumed that the many small and large players in the department store area (including Macy's, Sear, Dillards, Kohls, the pre-Johnson JCP and countless smaller chains and individual stores) were trapped in one or more low-quality optima. When you have this many diverse companies in a market this competitive and this mature, you expect to see a fair amount of something analogous to gradient searching ("That worked; let's do more to it."). If they haven't settled on your optimum point, it's almost certainly because they settled on another.

The lessons -- when you move into an established market you should probably assume the established players know the field and you should probably not assume that what worked somewhere else will work here -- could be (and were) reached without referring to fitness landscapes, but they do make a good framework for approaching a wide variety of problems.

Johnson moved to an unfamiliar region of a probably rugged landscape and refused to explore the surrounding area for higher points despite the fact that numerous other players that had explored the region had settled on a completely different points. When you phrase it this way, it doesn't sound good (of course, Johnson's approach doesn't sound good when you phrase it most ways).


* The 'C' stands for 'Cash' -- no, really.

Tuesday, March 19, 2013

If you actually want to close the achievement gap...

An excellent story from KPCC's Take Two. Considerably more effective in the audio version if you have the time.
Teenager Michelle Zamora has big dreams to become a civil engineer.

“Since 4th grade,” Zamora says, “I told myself I want to go to Stanford University.”

Zamora would be the first in her family to go to college, and as a self-described “smart kid,” Stanford never seemed too far-fetched an idea.

But at age 15, Michelle Zamora made a mistake: she got pregnant. And her dreams of college seemed to vanish.

Like thousands of other California teens, Zamora dropped out of high school.

She is among the majority of the state's teen moms --83%-- that come from low-income households. According to the California Department of Education, the state ranks number one nationwide with its rate of pregnancy among teens.

The worst part, she said, was the way most people assumed she was condemned to future that she didn’t want. People told her “well, you’re just going to be another teenager on welfare,” or “you’re not going to make it.” Zamora started to believe them.

And then she found out about a program in Baldwin Park that has given her renewed hope.

In the late 1990s, officials in the Baldwin Park Unified School District worried that they were losing too many students due to pregnancy. Using federal Early Head Start funds, the district launched an innovative program to ensure teen moms could stay in school.

When Zamora’s daughter was born in 2011, a friend told her about North Park high school which provides on-site daycare so teen moms and dads can complete coursework.

A Continuation high school, North Park enrolls students who failed or dropped out, but now want to finish high school. Its child care program is one of 18 at high schools across Los Angeles county that cater to teen parents. Since 1999, about 60% of North Park students have graduated and gone on to higher education.

















Monday, March 18, 2013

Today's vocabulary term is "flack-to-hack ratio"

Felix Salmon has one of those that-explains-a-lot posts up on his blog:
Quartz, in this deal, is getting one article, which needs a fair amount of editing; it’s a tiny proportion of Quartz’s daily output. Meanwhile, Brandtone is getting something very valuable indeed. Just look at the US flack-to-hack ratio: it’s approaching 9:1, according to the Economist, which means that for every professional journalist, there are nine people, some of them extremely well paid, trying to persuade that journalist to publish something about a certain company. That wouldn’t be the case if those articles weren’t worth serious money to the companies in question.

How valuable? How about somewhere between $250,000 and $1 million? That’s the amount of money that Fortune’s ad-sales team was asking, earlier this month, for a new product called Fortune Trusted Original Content:

Similar to licensed editorial content, TOC involves creating original, Fortune-branded editorial content (articles, video, newsletters) exclusively for marketers to distribute on their own platforms.

After news of the TOC program appeared, it was walked back — abolished, essentially. You can see why Fortune’s top editorial brass would be uncomfortable with the idea that Fortune editorial content could be commissioned by, and appear for the sole benefit of, advertisers. So now they’re going back to the old model, of just allowing advertisers to license (reprint, basically) stories which were independently commissioned and published by Fortune’s editors.

Still, the price point on the now-aborted TOC program is revealing. The cost of the content, from a “trusted freelancer”, would probably not be much more than a couple of thousand dollars — but the cost of the content to the advertiser could be as much as $1 million. The difference is entirely accounted for by the value of the Fortune brand.
The flack-to-hack ratio may have something to do with another recurring topic, the almost complete lack of coverage of the reemergence of over-the-air television (see here, here, here, here, and... hell, just do a search). Weigel Broadcasting may be an extraordinarily well run company, but as long as they run a largely flackless operation, you'll probably never hear about them.