I respect Bill Belichick more today than I ever have.
Last night he made a decision in the final minutes that led his team the New England Patriots to defeat. It will likely go down as one of the most criticized decisions any coach has ever made. With his team leading by six points and just over two minutes left in the game, he elected to go for it on fourth down on his own side of the field. His offense failed to get the first down, and the Indianapolis Colts promptly drove for a touchdown.
He has been excoriated for the choice he made. Everyone seems to agree it was a terrible blunder.
Here is why I respect Belichick so much. The data suggest that he actually probably did the right thing if his objective was to win the game.
Economist David Romer studied years worth of data and found that, contrary to conventional wisdom, teams seem to punt way too much.
Going for a first down on fourth and short yardage in your end zone is likely to increase the chance your team wins (albeit slightly). But Belichick had to know that if it failed, he would be subjected to endless criticism.
If his team had gotten the first down and the Patriots won, he would have gotten far less credit than he got blame for failing. This introduces what economists call a “principal-agent problem.” Even though going for it increases his team's chance of winning, a coach who cares about his reputation will want to do the wrong thing. He will punt, just because he doesn't want to be the goat. (I've seen the same thing in my research on penalty kicks in soccer; it looks like kicking it right down the middle is the best strategy, but it is so embarrassing when it fails that players don't do it often enough.)
What Belichick proved by going for it last night is that 1) he understands the data, and 2) he cares more about winning than anything else.
So hats off to Bill Belichick.
This decision may have hurt his chances for the Football Hall of Fame, but it guarantees his induction into the Freakonomics Hall of Fame.