Too Much Information: The Mixed Performance of Seat Betting Markets At The Federal Election

Advance Summary

1. Seat betting markets, considered by some to be highly predictive, returned an indifferent final result at the 2013 federal election, overpredicting the number of Labor losses by at least seven and predicting fourteen seats incorrectly.

2. Better results were achieved not only by local/state projections based on polling data but also could have been achieved by a simple reading of the national polls.

3. Seat betting markets in the final week most likely misread the election because of an overload of contradictory data.  They placed too much emphasis on local-level polling and internal polling rumours and too little on national polling.

4. Prior to the final week of the campaign, however, seat betting markets performed well in projecting an uncertain situation that was difficult to model.

5. Seat betting markets were most accurate immediately following the return of Kevin Rudd.  However this probably reflects on the modelling skills of bookmakers rather than punters.

6. Modellers wanting to know what seat totals betting markets expect should look at direct seat total markets rather than attempting to derive that information via complex and uncertain processes from seat betting markets.

7. Final direct seat total markets were very accurate.

2013 Federal Election Late Counting - House Of Reps

This post will follow late counting in the House of Representatives. The Current State of Play will always appear at the top of the screen, followed by Fairfax updates, some general comments from the early history of this article, and the newest non-Fairfax updates at the top of the section below that.

Current State Of Play (This will be changed when status changes)

Last updated 31 Oct (Fairfax)

Election result is 90 Coalition 55 Labor 5 Other (2 Ind 1 Green 1 KAP 1 PUP)

Fairfax: What Happens Now, and Past Close Finishes

31 Oct: It's over! (At least to the point the bookies pay out at; it remains to be seen if the LNP want to risk antagonising the PUP leader by taking this to Disputed Returns.) Clive Palmer will be declared the winner of Fairfax by 53 votes at the end of a massive struggle over an electorate that was not deemed worthy of a single published seat poll.

That officially concludes this thread, which has been the most visited thread on the site so far.  Thankyou all for your interest.