Thursday, October 8, 2015

Prediction markets

Here is a post about a way for firms to get good information about the profitability of offering a new product or process: http://marginalrevolution.com/marginalrevolution/2015/10/corporate-prediction-markets-work-well.html. Economists like prediction markets because they align the incentives of the bettor and the person seeking information and because price is a good summary of the publicly available information.

RAP

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