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| | Prediction market - Wikipedia, the free encyclopedia |
 | | However, Steven Gjerstad (Purdue) in his paper "Risk Aversion, Beliefs, and Prediction Market Equilibrium" [4] has shown that prediction market prices are typically very close to the mean belief of market participants if the distribution of beliefs is smooth (as with a normal distribution, for example). |
 | | In fact, this is not so different from what naturally happens in a prediction market where those who make good predictions do profit at the expense of those who make bad predictions, thus progressively increasing their relative influence on the market through how much money they can bring to bear to back up their predictions. |
 | | A pioneer in the use of prediction market data for commercial research sales, HSX Research, sells research data it gathers from its popular prediction market, Hollywood Stock Exchangeto its studio, advertising agency and financial services clients [11], in addition to licensing its prediction market technology services. |
| en.wikipedia.org /wiki/Prediction_market (1810 words) |
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