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An Introduction to Prediction Markets  (a.k.a. Idea Futures, Decision Markets, Information Markets, and Event Markets) alex kirtland / UsableMarkets 25 Mar 2007
Simple Definition of Prediction Markets ,[object Object]
outcome  / contract outcome  / contract outcome  / contract outcome  / contract outcome  / contract All Others The “who will win the 2008 presidential election” market the market (the event)
Contract Hillary:   Hillary Clinton  WILL BE  our next president $0.00 $1.00 Price 0% 100% Prediction $0.26 26% Hillary Clinton has a 26% chance, at this point in time, of being our next president.
All Others The “who will win the 2008 presidential election” market the market $0.26 $0.20 $0.18 $0.12 $0.24 26% 20% 18% 12% 24% = 100%
 
Basic Elements of a Prediction Market ,[object Object],[object Object],[object Object]
Basic Elements of a Prediction Market, cont. ,[object Object],[object Object],[object Object]
Simple Definition of Prediction Markets ,[object Object],[object Object],[object Object],[object Object],[object Object]
How are prediction markets  different than polls?
Who uses these things? ?
 
 
 
 
 
and others ... .
 
 
Gamers Gamblers Sophisticates Employees Your “Average Joe”
Knows how to trade Doesn’t
 
Most of us Knows how to trade Doesn’t
 
 
 
 
 
Where are we now? ,[object Object],[object Object],[object Object],[object Object]
Q&A ,[object Object]
Special Thanks To ... ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Thank You!

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Introduction to Prediction Markets

Hinweis der Redaktion

  1. Welcome. I’m assuming that most people have never heard of, or know very little about prediction markets. Right? Today’s goals basic introduction to prediction markets how they are used, who uses them and what for and to tell what I consider to be a fairly interesting story about how these markets have struggled to become more usable