The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Prediction Market Design

  • David C. Croson
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1943

Abstract

This article surveys (a) the challenges of transitioning the results from prediction-market experiments under laboratory conditions to outside-world conditions devoid of laboratory controls, (b) the abilities of current (as of this writing, in 2007) implementations of prediction markets to address these challenges, and (c) opportunities for research into future market designs which are robust to these challenges.

Keywords

Experimental methods in economics Goodhart’s Law Information aggregation Iowa electronic markets Laboratory markets Moral hazard Planning Prediction market design Prediction markets Subjective probability 

JEL Classifications

C9 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • David C. Croson
    • 1
  1. 1.