Prediction markets for Economic Forecasting
This is the title of a new research paper by Erik Snowberg, Justin Wolfers, and Eric Zitzewitz. Prediction markets have been used to accurately forecast the outcome of political contests, sporting events, and, occasionally, economic outcomes. Their paper (a contribution to the forthcoming Handbook of Economic Forecasting, volume 2) show how prediction markets can be used to uncover the economic model behind forecasts as well as test existing economic models.
Posted Sunday, July 15, 2012 at 16:05
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