This clarification from our good doctor David Pennock shows how indispensable this research scientist is to small people like us. 
Without David Pennock, the field of prediction markets would collapse like a castle of cards. Ha! ha! ha!…-
As a blogger, WeatherBill presents a difficulty: How to you categorize it? I fill it in these 4 categories:
- insurance (obviously)-
- finance (because it is hedging)-
- exchanges (because of what our good doctor Pennock said above, see the title)-
- betting (because the reverse of hedging is speculation)-
- UPDATE: I just added “-hedging”- —-so that’-s 5 categories now, probably too many. (It probably shows my readers that I am confused…- and really need a “-research scientist”-. Ha! ha! ha! )
Insurance is basically a hedge.
A hedge is basically an insurance.