Prediction Markets + Market Predictions = Collective Forecasting That Pays Off

Tag Archives: Virginia

Enterprise Prediction Markets = The wisdom of crowds comes to the enterprise.

Here are short excerpts of the Forrester report on enterprise prediction markets and companies that provide software for enterprise prediction markets.
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The Forrester executive summary:
The “wisdom of crowds” is capturing the attention of corporate strategists across the globe, and, as a result, many are now looking to prediction markets — speculative markets in which traders collectively [...]

Spikes

The best researchers on prediction markets

CFM: Scholars
Check that CFM page for updates. And contact me so I can make additions to the list. (I’ll then re-publish that updated list on Midas Oracle.)
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Michael Abramowicz – Michael B. Abramowicz – (Law School, George Washington University, Washington, D.C., U.S.A.) — Post Archives at Midas Oracle
Bernd H. Ankenbrand – Bernd Ankenbrand – (Lecturer, Witten/Herdecke [...]

Short list of the economics labs researching on prediction markets

Labs
(with thanks to Chris Hibbert of Zocalo)
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Iowa Electronic Markets – (IEM) – (Henry B. Tippie College of Business, University of Iowa, Iowa, U.S.A.)
Interdisciplinary Center for Economic Science – (ICES) – (George Mason University, Virginia, U.S.A.)
Economic Science Institute – (ESI) – (Chapman University, California, U.S.A.)
HP Labs – (Hewlett-Packard, Palo Alto, California, U.S.A.)
Laboratory for Experimental Economics and [...]

Where to find advice on how to set up your enterprise prediction markets

Consultants
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Inkling – URL: Inkling Markets – (Chicago, Illinois, U.S.A.)

Adam Siegel — Post Archives at Midas Oracle
Nathan Kontny

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NewsFutures – (Maryland, U.S.A. & Paris, France, E.U.)

Emile Servan-Schreiber — Post Archives at Midas Oracle
Maurice Balick

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Xpree – (U.S.A.)

Mat Fogarty — Post Archives at Midas Oracle

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HP Services – HP Labs – (U.S.A.)

Predicting the future –with games — Introductory article
Information Dynamics [...]

Unlike polls, prediction markets give incentives to think carefully.

Via Wall Street investor and blogger Barry Ritholtz, the Wall Street Journal:
[...] Since the election season began, investors on Intrade have risked $4.6 million in trades on Sen. Clinton and $3.4 million on Sen. Obama. [...] Robin Hanson, an economics professor at Virginia’s George Mason University, says the predictions markets work much as other markets [...]

Finally, someone tells the libertarian truth on the US ban against Internet betting and gambling.

Reason Magazine blog (who else?):
It’s too bad Europe, Japan, and Canada caved. Here’s hoping little Antigua stays plucky.
A few observations:
First, and most obviously, the U.S. government is so hellbent on policing the online habits of its citizens, it’s willing to pay what will likely be tens of billions of dollars of money in trade reparations—taken [...]

Yes, Virginia, BetFair does organize socially valuable prediction markets in UK politics.

Mike Smithson’s effort is paying off. Here are the BetFair political prediction markets:
Cabinet Exit Dates

Chancellor
Foreign Secretary
Home Secretary

Cabinet Specials

Next Chancellor
Next Foreign Secretary
Next Home Secretary
Next Prime Minister

Leader Exit Dates

David Cameron
Gordon Brown

Next General Election

Election Date
Most Seats
Overall Majority
Party Leaders

Next Lib Dem Leader
The prediction exchanges (betting exchanges) that organize the most socially valuable prediction markets are InTrade and PopSci PPX, [...]

Yes Virginia, Wikipedia is a warzone of vested interests.

Wiki Scanner: Search the Wikipedia edits to spot the organizations that edited it.
It would be interesting to investigate who edited the Wikipedia pages on prediction markets and betting exchanges. (At the time of writing, Wiki Scanner was out of service.)

UPDATE: BetFair, TradeSports-InTrade and the Hollywood Stock Exchange do control what you read on Wikipedia.
- BetFair [...]

Were the InTrade prediction markets on the November 2006’s Senate elections accurate?

Revisiting the issue, almost one year later.
Lance Fortnow (University of Chicago) wrote:
So how did those predictions go? In short you can say the markets predicted every individual race correctly but got the senate wrong, but let us look a little more carefully.
At about 9 AM CST on the morning of election day I made a [...]

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