Prediction Markets + Market Predictions = Collective Forecasting That Pays Off

Tag Archives: poor forecasting tool

Based on market data from a tiny prediction exchange (IEM, which is much smaller than InTrade-TradeSports or BetFair), a couple of researchers claim that prediction markets do not have superior predictive power. — And, adding salt to injury, they call our prediction market luminaries (Robin Hanson, Justin Wolfers, etc.)… “naive”.

Via Adam Siegel…
…of Inkling Markets fame….
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Are Political Markets Really Superior to Polls as Election Predictors? – (draft: PDF file) – by Robert S. Erikson and Christopher Wlezien – 2008-05-02
Abstract
Election markets have been praised for their ability to forecast election outcomes, and to forecast better than trial-heat polls. This paper challenges that optimistic assessment of election [...]

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