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Prediction Markets as a Tool for Management of Political Risk

Author

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  • O. Bergfjord

Abstract

Recently, several prediction markets for various events have been launched. The literature so far has focused on the predictive power of such markets. This paper considers such markets as tools for management of political risk. It outlines a model for use and pricing of such assets, and discusses the various benefits of a well-functioning, liquid prediction market for political decisions.

Suggested Citation

  • O. Bergfjord, 2008. "Prediction Markets as a Tool for Management of Political Risk," Journal of Prediction Markets, University of Buckingham Press, vol. 2(2), pages 1-12, September.
    • Handle: RePEc:buc:jpredm:v:2:y:2008:i:2:p:1-12
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    Cited by:

    1. Schadner, Wolfgang, 2022. "U.S. Politics from a multifractal perspective," Chaos, Solitons & Fractals, Elsevier, vol. 155(C).

    More about this item

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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