Wednesday, February 14, 2007

Very friendly NY Times article on prediction markets

Could this type of media coverage help our legislators "get it"?
Intrade, in other words, isn’t just an entertaining Web site. It is the latest iteration of one of the most important economic developments of modern times.

It has also been remarkably clairvoyant. Heading into the 2004 presidential election, Intrade’s odds correctly forecast the outcome in all 50 states. The 2008 election is far enough in the future that the current odds probably aren’t as telling. But they are still worth considering, especially because early odds have had a better forecasting record than early polls in recent years, says Mr. Wolfers, who spends much of his time studying prediction markets.

(Hat tip Chris Masse).

UPDATE: My good friend bmili posted on this last year. As usual, way ahead of the pack!

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