Via Wall Street investor and blogger Barry Ritholtz, the Wall Street Journal:
[...] Since the election season began, investors on Intrade have risked $4.6 million in trades on Sen. Clinton and $3.4 million on Sen. Obama. [...] Robin Hanson, an economics professor at Virginia’s George Mason University, says the predictions markets work much as other markets do, accumulating the best information of a self-selected group of people who are willing to bet money they are right. That differs from opinion polls, he adds, where people have no stake in the outcome and no incentive to get it right. “Markets give incentives to think carefully.” [...]
Funny enough, the title of the piece contains the phrase “prediction traders“. I like that.
[Robin Hanson]
[InTrade]
