What game theory teaches us about Lance Armstrong

Just stay with me there a minute...

Lance Armstrong, once cycling’s poster child, now faces a future in disgrace. Forced into standing down from the chairmanship of his cancer charity Livestrong, Nike has unceremoniously dropped him in the face of “insurmountable evidence” put forward by the US Anti-Doping Agency.

Having masterminded what USADA has referred to as “the most sophisticated, professionalised and successful doping programme that the sport has ever seen”, Armstrong cheated his way to an unprecedented seven Tour de France wins. Hard evidence and witness accounts have now testified, however, that the only thing Lance Armstrong convincingly won in his cycling career was a doping arms race.

With the help of controversial doctor Michele Ferrari, Armstrong and his team mates at the US Postal Service team stayed one step ahead of anti-doping officials. Not only were doping regimes planned to evade detection, but Ferrari was given information relating to testing procedures, allowing him to devise specific workarounds.

The conflict between dopers and scientists is an interesting one, with anti-doping officials continually closing doors only opened by the dopers themselves. A chicken and egg argument with a definitive answer, but no apparent solution. Athletes continually uncover methods in which to subvert the regulations, only to leave anti-doping officials in a perpetual state of catch-up.

Anti-doping authorities like USADA and WADA must tighten their practices and work towards enforcing much stricter parameters for athletes to qualify from; however they are at an instant disadvantage given the position from which dopers can work from. Game theory, the mathematical modelling of how two intelligent entities strategically interact, has been used to refine airport security measures to become less predictable, could it be used in a distinctly similar fashion here to thwart dopers?

A particular strain of game theory, dubbed Stackelberg, game suits the doping proposition perfectly, as it requires one entity to establish its defences first whilst the other conducts surveillance to identify weak spots. The notion of a sequential move, with the opposite entity responding to measures established by the first, closely resembles the way in which cycling’s dopers have found ways to subvert cycling’s anti-doping strategy.

Stackelberg game is also capable of introducing what has been billed as systematic randomness to the equation, vital in this instance given the random nature of drug testing. Cyclists can be requested to provide a sample at any time, even in the middle of the night, a factor which can be worked into the game. Stackelberg game has been used in airport security to make strategies harder to analyse through surveillance, a method which could have thwarted the way in which Armstrong and Ferrari successfully thwarted USADA for more than a decade.

What Lance Armstrong has managed to make abundantly clear is that current anti-doping controls are not working. Testing procedures need to become significantly more stringent and randomised if they are to be considered fit for purpose. If Stakelberg game can profess to do just that, then perhaps it’s time the theory’s own systematic and intelligent randomness was put to good use.

Lance Armstrong. Photograph: Getty Images

Liam Stoker is the aerospace and defence features writer for the NRI Digital network.

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR