Seems to me that the TradeSports market was reflecting what was happening on the field, rather than predicting it.

Exactly. :-D

See the fist comment, there.

Read the previous blog posts by Chris. F. Masse:

  • Five reasons Hillary Clinton should be worried
  • TURNING POINT: BARACK OBAMA EVENT DERIVATIVE NOW AHEAD
  • The Best External Web Links On Prediction Markets And On Everything Else
  • The InTrade webmaster is a moron.
  • The Economist rebuts Paul Krugman.
  • The US futures exchanges should not control clearing.
  • Billionaire Stephen Schwarzman: “I don’t feel like a wealthy person.”

2 thoughts on “Seems to me that the TradeSports market was reflecting what was happening on the field, rather than predicting it.

  1. Caveat Bettor said:

    Is forward pricing relevant?

  2. Michael Giberson said:

    I take that the comment, “reflecting what was happening on the field, rather than predicting it”, is intended as a criticism, but I don’t get it.

    .

    What the commenter noticed is that the market incorporated new information as it became available. But given that the traders were staking real money based upon their beliefs about the outcome of the event, while the event was still in progress, seems to give the activity the flavor of a prediction and not merely a reflection.

Leave a Reply to Michael Giberson Cancel reply

Your email address will not be published. Required fields are marked *