Outcome manipulation in corporate prediction markets

TY - JOUR

T1 - Outcome manipulation in corporate prediction markets

AU - Ottaviani, Marco

AU - Sørensen, Peter Norman

N1 - JEL Classification: D71, D82, D83

PY - 2007

Y1 - 2007

N2 - This paper presents a framework for applying prediction markets to corporate decision-making. The analysis is motivated by the recent surge of interest in markets as information aggregation devices and their potential use within firms. We characterize the amount of outcome manipulation that results in equilibrium and the impact of this manipulation on market prices

AB - This paper presents a framework for applying prediction markets to corporate decision-making. The analysis is motivated by the recent surge of interest in markets as information aggregation devices and their potential use within firms. We characterize the amount of outcome manipulation that results in equilibrium and the impact of this manipulation on market prices

KW - Faculty of Social Sciences

KW - predictions

KW - information aggregation

KW - forecasting

KW - incentives

U2 - 10.1162/jeea.2007.5.2-3.554

DO - 10.1162/jeea.2007.5.2-3.554

M3 - Journal article

SN - 1542-4766

VL - 5

SP - 554

EP - 563

JO - Journal of the European Economic Association

JF - Journal of the European Economic Association

IS - 2-3

ER -