Prediction Markets + Market Predictions = Collective Forecasting That Pays Off

Tag Archives: primary indicators

Volume = (News Rate) * (Intrinsic Interest)

Sounds true to me.
What do our research scientists think?
Would you re-formulate it?

Prediction markets on stock prices are not the panacea.

TradeFair, soon.
Not a bad idea, but not the best idea they could have.
The EPS prediction markets were a better idea, because they have many more primary indicators.
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Enterprise Prediction Markets = Voodoo Forecasting?

Of course, not.
But if a prediction market is an information aggregation mechanism, should you ask just any question before ever checking that there is indeed something to aggregate? For instance, can a prediction market foretell whether your competitor’s molecule will be approved by the FDA? I would say that it can’t in case your own [...]

What do the prediction market on the Mei Moses Fine Art Index and the prediction markets on climate change have in common?

They were both lambasted by a famous, controversial and bombastic prediction market blogger… and they both failed in spectacular fashion.
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Here’s what I wrote in October 2008:
InTrade are going to open prediction markets on the future price of art. These innovative prediction markets will fail miserably.
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The InTrade prediction market on the Mei Moses Fine Art Index [...]

How to oversell InTrade’s predictive power

Chad Rigetti (InTrade VP) is interviewed by the website “MoneyFoxs.com”.
In the seven days leading up [Joe Biden's] share price on Intrade went up about three and a half times. In the seven days leading up his share price on Intrade went up about three and a half times. In a field of about four or [...]

InTrade are going to open prediction markets on the future price of art. These innovative prediction markets will fail miserably. Here’s why. You heard it here first.

Those brand-new InTrade prediction markets will be based on the Mei Moses All Art Index.
Financial Times
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At first glance, that looks like a very bad idea. Indeed, I don’t see what primary indicators will be used by the event derivative traders to inform their betting decisions.
Is it another bad move from Chad Rigetti?
P.S.: I wish [...]

Beware the Real Clear Politics polls aggregation?

The selling point of enterprise prediction markets

Velocity.
Providing that the trading employees have access to all the primary indicators —which is a point missing in that self-serving afadavit linked to above.

Barack Obama + Joe Biden — THE PREDICTION MARKETS NAILED IT… triple alas (for my reputation as a world-wide prediction market pundit, and for the debate on the different quality of the various primary indicators out there).

“Friend — I have some important news that I want to make official. I’ve chosen Joe Biden to be my running mate.”
Some blogger says his wife is fantastic.
New York Times portrait of Joe Biden.
UPDATE: Barack Obama’s speech + Joe Biden’s speech
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I think it is the worst pick ever. What a blunder. Joe Biden (a D.C. [...]

“Our prediction markets have not had a very respectable accuracy on anything related to our main competitor.”

You’d be very naive to think that that would work.
Prediction markets fed on primary indicators —and, in this case, there aren’t any.
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