An interesting question popped up in the discussions around my World Cup simulations and more specific the somewhat lower than expected predicted performance of Senegal compared to home nation Qatar in group A.
Amir commented:
"Elo indeed has a regional problem - since there are not many matches between teams from different confederations, it takes a long time for ELO to adjust to the actual average per confederation.
If the difference are getting smaller (which is something worth testing), it means that Elo will indeed under-estimate CAF."
Apart from the difficulty to determine the "actual average per confederation", I personally have the impression that elo ratings are not regionally biased, because there isn't anything in the elo calculation that's influenced by the team's confederation. But maybe, indeed the number of intraconfederational versus interconfederational matches a team playes could be the exogenous factor. I decided to give it a go and research this.