[...] Now, do we need to call them *prediction* markets? I would agree that there is no real reason for that… All markets have information aggregation characteristics and sometimes it is annoying to see how much we reinvent the wheel when studying “prediction†markets, pretending that they are fundamentally new beasts. (The “we†includes myself.)
If we called them simply markets, I think we would have made significantly faster progress…
A prediction market is a market where a prediction is floated —people can buy or sell that prediction. Contrary to the traditional derivative markets, prediction markets are simplified to be usable by small people. Let’s keep this keyword.
