Feed the spinoff heuristic!

Follow-up to:

Parapsychology: the control group for science

Some Heuristics for Evaluating the Soundness of the Academic Mainstream in Unfamiliar Fields

Recent renewed discussions of the parapsychology literature and Daryl Bem's recent precognition article brought to mind the "market test" of claims of precognition. Bem tells us that random undergraduate students were able to predict with 53% accuracy where an erotic image would appear in the future. If this effect was actually real, I would rerun the experiment before corporate earnings announcements, central bank interest rate changes, etc, and change the images based on the reaction of stocks and bonds to the announcements. In other words, I could easily convert "porn precognition" into "hedge fund trillionaire precognition."

If I was initially lacking in the capital to do trades, I could publish my predictions online using public key cryptography and amass an impressive track record before recruiting investors. If anti-psi prejudice was a problem, no one need know how I was making my predictions. Similar setups could exploit other effects claimed in the parapsychology literature (e.g. the remote viewing of the Scientologist-founded Stargate Project of the U.S. federal government). Those who assign a lot of credence to psi may want to actually try this, but for me this is an invitation to use parapsychology as control group for science, and to ponder a general heuristic for crudely estimating the soundness of academic fields for outsiders.

One reason we trust that physicists and chemists have some understanding of their subjects is that they produce valuable technological spinoffs with concrete and measurable economic benefit. In practice, I often make use of the spinoff heuristic: If an unfamiliar field has the sort of knowledge it claims, what commercial spinoffs and concrete results ought it to be producing? Do such spinoffs exist? What are the explanations for their absence?

For psychology, I might cite systematic desensitization of specific phobias such as fear of spiders, cognitive-behavioral therapy, and military use of IQ tests (with large measurable changes in accident rates, training costs, etc). In financial economics, I would raise the hundreds of billions of dollars invested in index funds, founded in response to academic research, and their outperformance relative to managed funds. Auction theory powers tens of billions of dollars of wireless spectrum auctions, not to mention evil dollar-auction sites

This seems like a great task for crowdsourcing: the cloud of LessWrongers has broad knowledge, and sorting real science from cargo cult science is core to being Less Wrong. So I ask you, Less Wrongers, for your examples of practical spinoffs (or suspicious absences thereof) of sometimes-denigrated fields in the comments. Macroeconomics, personality psychology, physical anthropology, education research, gene-association studies, nutrition research, wherever you have knowledge to share.

ETA: This academic claims to be trying to use the Bem methods to predict roulette wheels, and to have passed statistical significance tests on his first runs. Such claims have been made for casinos in the past, but always trailed away in failures to replicate, repeat, or make actual money. I expect the same to happen here. 

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If psychology worked, I would expect marketing firms to use it to make millions of people buy tons of shit that they don't need and that won't make them happy.

Is there any evidence, one way or the other, as to whether marketers draw useful info from academic psychology?

More cheap evidence: marketing textbooks are stuffed full of mainstream psychological results and applications to the business of marketing.

Cheap evidence: Hacker News is full of people trying to get rich by selling something (usually access to web applications), and e.g. "Predictably irrational" has been mentioned. The marketing guru Seth Godin says he's been influenced quite a bit by Poundstone's "Priceless", which apparently "dives into the latest psychological findings".

Of course, this is only informal evidence, only shows "some marketers" and only shows "believed to be useful".

Waveman's comment also seems relevant.

I believe marketers do use psychology and many, if not most, Americans do buy "tons of shit that they don't need and that won't make them happy!"

I believe Luke intended this to be understood =)

Well I think to large extent marketing firms rely on their own know-how, which I imagine is rather scientific. I have first hand experience with this (I am selling a computer game through Steam). Various statistics is used to see what does better. Their marketing people are really great at e.g. picking the most-clickable banner design, versus the one that I thought would be the most clickable (I did my own stats and confirmed their choice).

If personality psychology holds water, I would expect dating sites to use it and produce better results than Traditional Romance. Does it? From the outside looking in, it looks like it does.

It would also be useful in selecting dorm room compatibility, which I can tell you from the inside looking out does not work at all or isn't being used. I wouldn't expect it to be used in this context, though. No money in it.

Contrary evidence:

“To date, there is no compelling evidence that any online dating matching algorithm actually works,” Finkel observes. “If dating sites want to claim that their matching algorithm is scientifically valid, they need to adhere to the standards of science, which is something they have uniformly failed to do. In fact, our report concludes that it is unlikely that their algorithms can work, even in principle, given the limitations of the sorts of matching procedures that these sites use.”

I don't know if any of the dating sites they reviewed use a similar system to OkCupid (users answer questions and also pick how they want matches to answer those questions and how important they are to them,) but I don't think OkCupid was included in that study. The author wrote that the matching algorithms of the companies they reviewed are proprietary, and were not shared with the researchers, but OkCupid's matching algorithm is publicly available.

I don't think OKCupid contains a good way of tracking long-term romantic success once a relationship escapes from the site, but it certainly has the data to correlate any one of several personality metrics with length of correspondence, which strikes me as a half-decent proxy: there's a huge library of personality tests on the site, including some well-known ones like the MBTI and the Big 5. OKTrends has almost certainly touched on this before, although you'd probably have to apply a lot of logical glue yourself to get a theory to stick together properly.

OKC's primary metric, however, relies on self-selected answers to a large pool of crowdsourced questions. If there's been any academic research done in that exact space I'm not aware of it, but it wouldn't be too much of a stretch to view correlations between match metrics and actual romantic success as answering the question "how well do people know their own romantic preferences?" -- or conversely to see academic answers to that question as informing OKC's methodology.

This week's issue of The Economist has a summary of the scientific evidence behind the popular Internet dating websites.

I would add to this that having a method would often (but not always) produce a clear "leader in the field" (first-mover advantage going to the discoverer). So seeing Google's share of the market is a strong indicator (even without first-hand knowledge) that "they have a serious advantage in search" vs existence of many competing diet companies does not tell me "they figured out nutrition".

Good point, but to nitpick Google wasn't a first-mover in search, it defeated AltaVista and other search competitors based on superior performance. They were a first-mover with PageRank, though.

There's interesting thing: Some people managed to acquire a lot of wealth via trading. That would lead you to believe their claims with regards to the methods they use being effective.

However, if you simulate the stock market with identically skilled agents, you obtain basically same wealth distribution as observed in the real world, with some few agents ending up extremely 'rich'. One can imagine that such agents, if they were people, would rationalize their undeserved wealth to feel better about themselves.

Tetlock's political judgment study was a test for macroeconomics, political science and history. Yet people with PhDs in these areas did no better on predicting macro political and economic events than those without any PhD. Maybe macro helps in producing good econometric models, but it doesn't help in making informal predictions. (Whereas one suspects that physics and chemistry would help in a test of quick predictions about a novel physical or chemical system, vs. people without a PhD in these fields).

Another analogy is that having a PhD in the relevant sciences doesn't help you play sports.

In some sports, applied science seems important to improving expert performance. The PhD knowledge is used to guide the sportsperson (who has exceptional physical abilities). Likewise, our skill at making reliably sturdy buildings has dramatically improved due to knowledge of physics and materials science. But the PhDs don't actually put the buildings up, they just tell the builders what to do.

Two issues with this heuristic:

1) It doesn't work well for credence goods.

2) Sometimes it takes a long time for sciences to find an application, two modern examples are astrophysics, and particle physics.

Re: your examples successful spin-offs for psychology, to what extent did these therapies come out of well-established theory? Maybe someone can weigh in here. It seems possible that these are good therapies but ones that don't have a strong basis in theory (in contrast to technologies from physics or chemistry).

Physicist Ilya Prigogine developed his famous theory of dissipative systems which was expected to explain a lot of things from thermodynamics of living systems to the nature of the arrow of time. It is a very well-developed and deep theory. Yet, in my scientific life, I have never seen an actual numerical calculation of a measurable quantity utilizing any of Prigogine's concepts such as "rate of entropy production". Looks definitely like a missing spinoff!

If stock market economics worked, Noble prize winners would make money.

(This is slightly unfair, since the Black-Merton-Scholes theory does make other people money, to an extent. Additionally, while Merton and Scholes were on the board, LTCM was not strictly based on their theories. Still, surprised to see that this hasn't been mentioned.)

It seems to me that there are two different heuristics here and it is worth separating them.

But first I should explain why I think my initial reading of this post suggests heuristics that I think are problematic. The mere existence of CBT does not seem like strong evidence for psychology. It is no more evidence for modern mainstream psychology than freudian psychoanalysis is evidence for freudian psychology. As I understand it, CBT is gaining market share against other forms of talk therapy, but largely because of academic authority, roughly the same way that the other therapies got established. I am a fan of CBT because its proponents claim to do experiments distinguishing its efficacy from that of other talk therapies and failing to distinguish other talk therapies from talking to untrained people (which is still useful). But why do I need CBT for that? I can check that mainstream psychologists are more enthusiastic about experiments than freudian ones without resorting to the particular case of CBT. Similarly, competing nutritional theories are successful in the marketplace, sold both by large organizations with advertising budgets (Weight Watchers vs Atkins) and personal trainers working by word of mouth. But I agree that they example of CBT sheds light on psychology.

One heuristic is that experiments with every-day comprehensible goals are more useful for evaluating a field than experiments of technical claims. Most obviously, it is easier to evaluate the value of the knowledge demonstrated by such experiments than technical knowledge. Knowing that statins lower cholesterol is only useful if I trust the medical consensus on cholesterol, but knowing that they lower all-cause mortality is inherently valuable (though if the population of the experiment was chosen using cholesterol, this is also evidence that the doctors are correct about cholesterol). Similarly, the efficacy of CBT shows that psychologists know useful things, and not just trivia about what people do in weird situations. Moreover, I suspect that such experiments are more reliable than technical experiments. In particular, I suspect that they are less vulnerable to publication bias and data-mining. Certainly, I have to learn about technical measures to determine how vulnerable technical experiments are to experimenter bias.

The other heuristic is that selling a theory to someone else is a good sign. Unfortunately, this seems to me of limited value because people buy a lot of nonsense, not just competing psychological and nutritional theories, but also horoscopes. How does the military differ from academic psychologists? I'm sure it hires a lot of them. They do much larger and longer experiments than academics. They do more comprehensive experiments, with better measures of success, analogous to the advantage of all-cause mortality over number of heart attacks (let alone cholesterol). They could eliminate publication bias because they know all the studies they're doing, but only if the people in charge understand this issue; and there is still is some kind of bias in the kind of studies they let me read. These are all useful advantages, but in the end it does not look very different to me than the academic psychology we're trying to evaluate. Similarly, industry consumes a lot of biological and chemical research, which is evidence that the research is, as a whole, real, but it fails to publish attempts to replicate, so the information is indirect. On the other hand, these industries, like the military, use the knowledge internally, which is better evidence than commercial CBT and nutrition, which try to sell the knowledge directly, and mainly demonstrate the value of academic credentials to selling knowledge.

I have been unable to find any practical spinoffs of gender studies.