At Midas Oracle, Chris Masse spills the truth about prediction markets:
Come to the wonderful world of collective intelligence, wisdom of crowds, and prediction markets!… The sun shines bright, the market-generated predictions are vastly superior to polls as election predictors, and the track record of the public prediction markets stretches as far as the eye can see. There are opportunities aplenty in the field of prediction markets, and the trading technology is cheap. Every working enterprise can have its own internal prediction exchange, and inside every exchange, enterprise prediction markets that correctly predict the future of business, which their happy, all-American CEO listens to. Life is good in the magic world of prediction markets… it’s paradise on Earth.
Ha! ha! ha! ha!… That’s what they tell you, anyway… —because they are selling an image. They are selling it thru their vendor websites, vendor conferences, vendor-fed professor interviews on television, and vendor-inspired articles in newspapers and magazines.
The reality check is…
Read the rest at Midas Oracle.