Friday, February 16, 2007

A look at decision markets

Recently we talked about decision markets in class. Here is a NY Times article on the same:

Odds Are, They’ll Know ’08 Winner - New York Times:
"Over the last few years, Intrade — with headquarters in Dublin, where the gambling laws are loose — has become the biggest success story among a new crop of prediction markets. Another company, Newsfutures, helps the world's largest steel maker, Arcelor Mittal, run an internal market on which executives predict the price of steel. At Best Buy, a company called Consensus Point has helped start a market for employees to guess which DVDs and video game consoles, among other products, will be popular. Google and Eli Lilly have similar markets. The idea is to let a company’s decision-makers benefit from the collective, if often hidden, knowledge of their employees."
Also my favorite:

If you are interested, I definitely recommend reading the Wisdom of Crowds.

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