Prediction market

Prediction market,

Definition of Prediction market:

  1. A market created around some activity or probability, like a presidential election, a terrorist attack or a natural disaster. Individuals buy and sell based on what they see as the probability of the event. Prediction markets are sometimes executed on the stock market, sometimes in a closed market akin to a betting pool. Also called information markets, idea futures, event derivatives.

  2. Robin Hanson, a professor at George Mason University, is considered among the tireless advocates of prediction markets. He makes the case for prediction markets by emphasizing the removal of reliance on self-interested punditry by so-called experts. "Instead, let us create betting markets on most controversial questions, and treat the current market odds as our best expert consensus. The real experts (maybe you), would then be rewarded for their contributions, while clueless pundits would learn to stay away," he writes on his web page and even goes to the extent of proposing a new form of government based on idea futures.

  3. The prediction market is a collection of people speculating on a variety of events—exchange averages, election results, commodity prices, quarterly sales results or even such things as gross movie receipts. The Iowa Electronic Markets, operated by faculty at the University of Iowa Henry B. Tippie College of Business are among the better-known prediction markets in operation.

How to use Prediction market in a sentence?

  1. They are used to bet on a variety of instances and circumstances, from the outcome of presidential elections to the results of a sporting event to the possibility of a policy proposal being passed by legislature.
  2. Prediction markets depend on scale; the more individuals participate in the market, the more data there is, and the more effective they become.
  3. Prediction markets are markets that bet on the occurrence of events in the future.

Meaning of Prediction market & Prediction market Definition