Author Archives: Michael Giberson

About Michael Giberson

Energy Economist - Center for Energy Commerce, Rawls College of Business, Texas Tech University. - Texas, U.S.A.

Who would you back, the market consensus or a book-writing pundit?

Tyler Cowen picks the market consensus over book-writing pundits: Either the current market estimate of inflation is the best estimate available, or you know that it is wrong and you will be a very rich man. I find the former … Continue reading

Posted in All Guest Authors's Posts, Analysis (Market Proposals), Analysis (Meta), Prediction Journalism, Resources - References | Tagged , , , , , | 9 Comments

Super Tuesday = Free money, if you are smarter than the crowd

At Overcoming Bias, Eliezer Yudkowsky invites pundits, partisans, and anyone else with a nascent opinion about the limits of prediction markets to, in effect, put up or shut up. (Though he puts it in somewhat nicer words). Here is a … Continue reading

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Better Pricing for Tournament Prediction Markets

Last year while working out a few thoughts on arbitrage opportunities in basketball tournament prediction markets at Inkling, it occurred to me that the Inkling pricing mechanism was just a little bit off for such applications. The question is whether … Continue reading

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New Hampshire is just another “Pentagon moment” for political prediction markets

I think all the excitement over the New Hampshire prediction market prices is creating another “Pentagon moment” for the concept. A lot of attention is being paid to prediction markets, and it looks bad, but ultimately it will turn out … Continue reading

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The future of futurism: crowds or entrepreneurs?

Chris Masse has already linked to The Economist story on futurists, which ends with a plug for prediction markets: The most heeded futurists these days are not individuals, but prediction markets, where the informed guesswork of many is consolidated into … Continue reading

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Inkling’s Dead Radiohead Market

Radiohead’s pick-your-own-price experiment, industry redefining move, publicity stunt for their album “In Rainbows” has had its 15 days or so of fame. Is there anybody out there still caring? Maybe not. In fact, judging by Inkling’s own Radiohead prediction market, … Continue reading

Posted in All Guest Authors's Posts, Cases, Exchanges & Markets, Market Liquidity, Market Prices & Probabilities | Tagged , , , , , , , , , , , | 4 Comments

Separating cheap talk from truly held beliefs

— In his book, Plight of the Fortune Tellers, Riccardo Rebonato describes how an invitation to bet can be used to separate cheap talk from truly held beliefs (and, in the process, ruin an otherwise engaging dinner conversation). In the … Continue reading

Posted in All Best Posts Ever, All Guest Authors's Posts, Analysis (Market Calls), Betting, Prediction Journalism | Tagged , , , , , , , , , , , , , , , , , , | 2 Comments

Austan Goolsbee on Iraq and the Collective Wisdom of Bond Markets

Austan Goolsbee, writing in the New York Times, discusses Michael Greenstone’s paper (discussed here at Midas Oracle in September) that examines the market for Iraq’s bonds for an assessment of the long-term future of the Iraq government. Goolsbee’s quick conclusion: … Continue reading

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How long will the writers’ strike last? And can prediction markets help answer this question?

The Writers Guild of America went on strike earlier this week. Actress Eva Longoria, of ABC TV’s show Desparate Housewives, reportedly is concerned about the show’s crew, “that will have a terrible holiday season because there’s no resolution.” She added, … Continue reading

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Overview of Henry Manne’s, “Insider Trading: Hayek, Virtual Markets, and the Dog that Did Not Bark”

In “Insider Trading: Hayek, Virtual Markets, and the Dog that Did Not Bark,” Henry Manne reflects on the insider trading literature in law, economics, and finance and considers how well his initial arguments have stood the test of time. His … Continue reading

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