how do prediction markets work
PARENT
metamitya
metamitya
here is some research about how prediction markets work...
10/27/17
1
The theories underlying PAM and other prediction markets are the Efficient Capital Markets Hypothesis (ECMH) and the Hayek hypotheses.[8] These hypotheses explain how information is aggregated such that market prices provide accurate estimates on the likelihood of future outcomes.[9] According to ECMH, capital markets are “extremely efficient in reflecting information about individual stocks and about the stock market as a whole,” such that no amount of analysis in an attempt to forecast future stock prices can beat the market.[10]
10/27/17