Tag Archives: DAVE PENNOCK

CFTC Oversight May Not be a Boon.

I want to quibble with one of Dave Pennock’s comments on the CFTC request. Pennock wrote “It’s not often that an industry in its infancy cries out for more government oversight.” It’s actually quite common. The term in the economics … Continue reading

Posted in All Best Posts Ever, All Guest Authors's Posts, Analysis (Industry), Exchanges & Markets, Regulations | Tagged , , , , , , , , , , , , , , , | 20 Comments

BetFair’s brand-new matching-bet logic is endorsed by the Chairman of the Midas Oracle Advisory Board.

- The Sporting Exchange executives and shareholders will be happy to know that economist Michael Giberson has given his stamp of approval to BetFair’s brand-new matching-bet logic. Wow. They’ll open Champagne bottles in HammerSmith, tonite, when they know that. If … Continue reading

Posted in All Best Posts Ever, Exchange & Market Designs, Exchanges & Markets, Mechanism Designs | Tagged , , , , , , , , , , , , , , | 31 Comments

Pennock & Sami on “Computational aspects of prediction markets”

Dave Pennock and Rahul Sami have written a book chapter on Computational Aspects of Prediction Markets. It focuses on computability and complexity issues in markets that handle combination, conditional and compound orders. The article talks about the costs for the … Continue reading

Posted in All Best Posts Ever, All Guest Authors's Posts, Analysis (Industry), Analysis (Meta), Inventions & Innovations, Market Makers (Automated), Mechanism Designs | Tagged , , , , | 2 Comments

The Wisdom Of Crowds: James Surowiecki on the predictive accuracy of the horse race betting markets

With your permission ( ), I am re-publishing here in one blog post the two comments from James Surowiecki, so the Midas Oracle readers who don’t subscribe to comments can see it. [...] The crowd of bettors at the racetrack … Continue reading

Posted in All Best Posts Ever, Analysis (Accuracy & Precision), Betting, Collective Intelligence - Wisdom Of Crowds, Economics, Forecasting (Science & Practice) | Tagged , , , , , , , , , , , | 2 Comments

Conditional and Combinatorial Betting

After people have used Prediction Markets for a while and have gotten used to their ability to provide forecasts, they start thinking about different scenarios. Who would be the best Republican to face Clinton? How are the prospects for a market boom or crash effected by the winner of the election? How will poverty be affected by a proposed World Bank program? These kinds of questions can be posed in a number of ways using Prediction Markets. Markets can allow betting on conditional (if) or conjunctive (and) questions. Either one can be used to answer the what if questions, but they provide different choices to the bettors, and some make it easier for observers to decode the answers. Continue reading

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Integrating Book Orders and Market Makers

Dave Pennock gave a gentle introduction on his blog to the Market Scoring Rule invented by Robin Hanson. In the comments, Sid asked for an explanation of how to integrate the MSR with an order book. Dave asked me privately if I’d be willing to tackle that, and this post is the result. Continue reading

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SCIENTIST DAVE PENNOCK IS LAUGHING ALL THE WAY TO HIS NEW YORK BANK.

… Psstt… TradeSports traders… Wanna be rich?… Do like David Pennock: Get a PhD… with a major in probabilities… Although TradeSports’s individual state predictions and overall Senate prediction were entirely consistent, one might argue that traders underestimated the degree of … Continue reading

Posted in Analysis (Accuracy & Precision), Exchanges & Markets, Market Expiry, Market Prices & Probabilities | Tagged , , , , | Leave a comment