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Historical Political Futures Markets: An International Perspective

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  • Paul W. Rhode
  • Koleman Strumpf

Abstract

Political future markets, in which investors bet on election outcomes, are often thought a recent invention. Such markets in fact have a long history in many Western countries. This paper traces the operation of political futures markets back to 16th Century Italy, 18th Century Britain, and 19th Century United States. In the United States, election betting was a common part of political campaigns in the antebellum period, but became increasingly concentrated in the organized futures markets in New York City over the postbellum period.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14377.

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Date of creation: Oct 2008
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Handle: RePEc:nbr:nberwo:14377

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Cited by:
  1. Snowberg, Erik & Wolfers, Justin & Zitzewitz, Eric, 2011. "How Prediction Markets Can Save Event Studies," IZA Discussion Papers 5640, Institute for the Study of Labor (IZA).

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