Tuesday, August 14, 2007
A decision market (also known as a prediction, information, or idea market) is a speculative market designed to make predictions on the outcome of a particular event. It is like a stock market where people buy and sell shares of ideas instead of companies. The market harnesses the wisdom of the crowd by aggregating the knowledge of its players-development practitioners, academics, and professionals-and representing it as a single share price. When taken together, this information can provide a powerful indication of the quality of an idea.
Some background can be found at http://mandenews.blogspot.com/2006/12/prediction-markets-as-source-of.html.