Oral argument in Lott v. Levitt
SteveLevittThe oral argument heard before the 7th Circuit Appeals Court can be found here.
Levitt's original correction letter.
Levitt's original correction letter.
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Mr. Strumpf replies that most of Mr. Liebowitz's criticisms are trivial, even if correct. "Almost every point raised in Liebowitz's various pieces," he says, "involves incidental points which are not central to our conclusions."
Mr. Liebowitz, however, says his objections cast doubts over the entire study. Because he has not been able to scrutinize the OpenNap data at the heart of the study, his criticisms are largely aimed at a few non-OpenNap-based auxiliary tests that are presented at the end of the paper. But those tests are so weakly constructed, he says, that they call into question the validity of all the work.
One of the tests has to do with seasonal variations in record sales. "The number of file-sharing users in the United States drops 12 percent over the summer ... because college students are away from their high-speed Internet connections," Mr. Oberholzer-Gee and Mr. Strumpf write. Because of that seasonal dip, we might expect to see higher CD sales during the summer. But summer CD sales, as a proportion of the full year's sales, have not risen during the file-sharing era. Ergo, there doesn't seem to be much relationship between file sharing and CD sales.
That all sounds logical enough. But Mr. Liebowitz points out that one of the argument's premises—"the number of file-sharing users in the United States drops 12 percent over the summer"—is profoundly misleading.
The authors' citation is to a report on monthly file-sharing usage prepared by BigChampagne, a company that measures traffic on peer-to-peer networks. Mr. Liebowitz has a copy of the same report, which covers the period from August 2002 through May 2006. It's true that summer file sharing drops by an average of 12 percent (11.7 percent, to be precise) during the three summers—2003, 2004, 2005—covered in that report. But all of that effect comes from a severe drop in the summer of 2003, during a much-publicized wave of industry lawsuits against file sharers. During the summer of 2004, file sharing was flat, and during the summer of 2005, it actually rose slightly. So the test Mr. Oberholzer-Gee and Mr. Strumpf have set up—which is based on the ratio of summer-to-full-year CD sales—tells us nothing, Mr. Liebowitz says.
"If one my undergraduates did that, I would fail him," says Bruce D. McCullough, a professor of decision sciences at Drexel University who became interested in the dispute because he is a proponent of data transparency in economics publishing. "To take one decline, one flat, and one advance, and to suggest that it always goes down in the summer is just wrong." . . .
In an e-mail message to The Chronicle, Mr. Strumpf defends his work and suggests that Mr. Liebowitz's zeal stems from the fact that an academic center he directs, the Center for the Analysis of Property Rights and Innovation, receives grants from the Recording Industry Association of America and other commercial interests. "One might ask why Professor Liebowitz has remained so engrossed with our study," he writes.
Through a stroke of luck, a referee report in the review process at the JPE has been positively identified as the Oberholzer-Gee/Strumpf (O/S) response to my earlier comment. Regardless of the response's provenance, what counts is whether it solidly refuted my comment. This 'sequel' analyzes the O/S response. The O/S response only deals with four of the nine points discussed in my comment, leaving the five remaining critiques unchallenged. The conclusion of my review is that the O/S response fails as a defense of these four points and contains many of the same types of errors that marred their original paper. This sequel also discusses the history of this dispute including O/S' various reasons for not making their data available. Finally, this sequel provides full documentation on the JPE's decision not to publish the comment.
Recently, this paper has sparked a heated discussion. The relevance of the debate extends far beyond the paper in question. It questions the reliability of empirical studies in economics, and may ultimately challenge the way in which the crème de la crème of scientific journals deals with scientific evidence.
The key question is: how can a study that is based on secret data that nobody has double-checked be printed without close examination by one of the most prestigious economics journals? This is especially puzzling because the supplier of the data has a special interest in a certain result. The study of the two economists from Harvard and Kansas is based on proprietary data on music downloads, which the authors received from the file sharing services "MixmasterFlame" and "FlameNap."
. . . .
Liebowitz knew of the filesharing study before it was published because it had been circulated as a working paper. In his letter he told Levitt that, despite repeated requests, the authors did not provide him with an opportunity to check their results. Could he please use his influence as editor of the "JPE" to make such checks possible? Levitt declined to tell Handelsblatt whether he followed up on this request.
It appears that he did not. Even one year after publication, the authors still keep their data to themselves. Oberholzer-Gee told Handelsblatt that they had to sign an agreement not to share the data to get them from the file sharing service. The authors argued that they had to "protect their sources" and declined to provide Handelsblatt with either a copy of the agreement or the name of a reference at the file sharing service who could confirm their version.
Liebowitz pressed Levitt, the editor of the "JPE," to at least correct several mistakes and ambiguities before publishing the paper.
For example, the authors write that about half the reductions in music CD sales are the result of the increase in market share of music discount stores with smaller inventories. Liebowitz argues that this cannot possibly be correct. He calculates that, even under extreme assumptions, the reduction in inventories can at most account for one-sixth of the decrease in sales. "It is unbelievable that a top-journal like the "JPE" would publish such claims without any evidence," Liebowitz complains in his letter, and he points Levitt to an entire series of additional errors or ambiguities.
Levitt forwarded Liebowitz’ letter to the authors, who ignored it—their study was published with only minor changes. Since then, file sharing services can refer to an academic paper in one of the top economics journals to defend themselves against the music industry.
In principle, like many other journals, the "JPE" requires that authors publish not only their results but also disclose the data and the methods that they use to derive them. However, this requirement does not apply to Oberholzer-Gee and Strumpf—their paper was accepted before the requirement became binding. "This has nothing to do with science," criticizes Bruce McCullough, professor of decision sciences at Drexel University in Philadelphia. "Without scrutiny, there can be no science," says the expert on the replicability of empirical results in economics. . . .
Email from John McCall to Steven LevittYou also state that others have tried to replicate [Lott’s] research and have failed. Please supply me with appropriate citations so that I might check for myself.
Email from Steven Levitt to John McCallThere was a NRC/ natl acad of sciences panel I was part of about research on guns that came out in 2004. That will point you in the right direction. . . .
Email from John McCall to Steven LevittHi Steve,
I went to the website you recommended -- have not gone after the round table proceedings yet -- I also found the following citations -- have not read any of them yet, but it appears they all replicate Lott's research. The Journal of Law and Economics is not chopped liver. . . .
Cordially,
John McCall PhD
Email from Steven Levitt to John McCallJohn,
It was not a peer refereed edition of the Journal. For $15,000 he was able to buy an issue and put in only work that supported him. My best friend was the editor and was outraged the press let Lott do this.
Steve
Email from John McCall to Steven LevittReturning to the $15,000 bribe issue of JLE and -- although I have not yet gone (I will find it tomorrow) to the NRC/natl. acad. of sciences panel you recommended -- I am wondering whether those deliberations were published somewhere, and, if so, who paid for that. Could such not have been essentially the same thing? I noticed that this issue of JLE was the results of a conference on crime safety and guns that was sponsored by AEI and the Yale Center for Studies in Law. I understand how your best friend the editor could have been outraged, and I hope he had the principle to resign his position in protest. However, we all eventually realize that an editor is but a small cog in a big wheel.
Email from Steven Levitt to John McCallJohn, if you read the paper by Duggan in JPE, and Ayres and Donohue in Stanford Law Review, and the NAS/NRC report (which was not paid for by anyone, it is done by the National Academy of Sciences), you will see the other side of the debate. Steve
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