Thursday, April 05, 2007

Prediction markets

1. Prediction markets are speculative markets created for the purpose of making predictions
2. The pros: more diversified and brings in perspectives from multiple dimensions.The cons: doesn’t always work, financial markets not always reliable, legal issues.
3. How the prediction produced by the market reflects “the wisdom of crowds”? A few experts in the field usually directly reflect the consensus of the collaborative predictions of a crowd.

No comments: