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Tools for Consumer Rights Protection in the Prediction of Electronic Virtual Market and Technological Changes

Author

Listed:
  • Mikuláš Gangur

    () (University of West Bohemia in Pilsen)

  • Miroslav Plevný

    (University of West Bohemia in Pilsen)

Abstract

Electronic virtual markets can serve as an alternative tool for collecting information that is spread among numerous experts. This is the principal market functionality from the operators’ point of view. On the other hand it is profits that are the main interest of the market participants. What they expect from the market is liquidity as high as possible and the opportunity for unrestricted trading. Both the operator and the electronic market participant can be considered consumers of this particular market with reference to the requirements for the accuracy of its outputs but also for the market liquidity. Both the above mentioned groups of consumers (the operators and the participants themselves) expect protection of their specific consumer rights, i.e. securing the two above mentioned functionalities of the market. These functionalities of the electronic market are, however, influenced by many factors, among others by participants’ activity. The article deals with the motivation tools that may improve the quality of the prediction market. In the prediction electronic virtual market there may be situations in which the commonly used tools for increasing business activities described in the published literature are not significantly effective. For such situations we suggest a new type of motivation incentive consisting in penalizing the individual market participants whose funds are not placed in the market. The functionality of the proposed motivation incentive is presented on the example of the existing data gained from the electronic virtual prediction market which is actively operated.

Suggested Citation

  • Mikuláš Gangur & Miroslav Plevný, 2014. "Tools for Consumer Rights Protection in the Prediction of Electronic Virtual Market and Technological Changes," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(36), pages 578-578, May.
  • Handle: RePEc:aes:amfeco:v:36:y:2014:i:16:p:578
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    References listed on IDEAS

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    More about this item

    Keywords

    virtual market; prediction market; consumer rights protection; motivation tools; incentive system; inflation; information collection;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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