“How social influence can undermine the wisdom of crowd effect”

Michael Giberson New in the Proceedings of the National Academy of Sciences, a paper showing how the “wisdom of crowd” effect can be undermined when members of the “crowd” are given information about what the rest of the crowd predicted. Averaged or full information about others’ predictions tended to narrow the diversity of predictions in… More “How social influence can undermine the wisdom of crowd effect”

Julian Simon and John Tierney were just lucky, he guesses

Michael Giberson Cornucopian views on resources are back in the news a bit due to John Tierney’s column at the New York Times in which he reports the settling of a wager on oil prices entered into in 2005 with oil industry analyst/peak oil proponent Matt Simmons. In brief, Simmons bet Tierney oil prices would… More Julian Simon and John Tierney were just lucky, he guesses

When will manipulation of public prediction markets begin to work?

Michael Giberson At Constructive Economics, Abe Othman discusses a purported manipulation attempt in Intrade’s Health Care Reform bill market.  The nut of the story is that early on March 17th a trader apparently poured a bit of money into the market, briefly driving the price from around 60 down to 35.  After a few hours… More When will manipulation of public prediction markets begin to work?

Onions and motion picture box office receipts

Michael Giberson Felix Salmon had an op-ed in New York Times on Hollywood’s opposition to the trading of future’s contracts based on box office receipts.  Salmon said: In the 1950s, onion growers were often shocked at the low prices they were getting. Casting around for a villain to blame, they alighted on derivatives traders, and… More Onions and motion picture box office receipts

Will the CFTC allow the newly approved box office futures exchange to actually offer box office futures contracts?

Michael Giberson As just noted, the CFTC has approved Media Derivatives request to establish Trend Exchange, a box office futures exchange.  At Midas Oracle, Chris Masse reacts to the news by drawing attention to remarks by CFTC commissioners suggesting that it may be difficult for Trend Exchange to gain the subsequent CFTC approvals needed for… More Will the CFTC allow the newly approved box office futures exchange to actually offer box office futures contracts?

CFTC approves box office futures market

Michael Giberson Today the CFTC approved Media Derivatives Inc.’s request to create a futures exchange based on box office receipts.  The exchange “is primarily focused on the development of a variety of products to benefit the entertainment industry with one if its initially proposed products being designed to help mitigate risk and enhance the successful… More CFTC approves box office futures market

Prediction markets for movie box office: Manipulation! Insider Trading! Efficiency! and Twitter!

Michael Giberson Tyler Cowen links to a story in the New York Times detailing the opposition of the Motion Picture Association of America to two proposed markets for forecasting movie ticket sales.  Of the objections noted in the article, Cowen thinks the key issue for Hollywood is the possibility of a poor market showing making… More Prediction markets for movie box office: Manipulation! Insider Trading! Efficiency! and Twitter!