Improving the Idea Screening Process within Organizations using Prediction Markets: A Theoretical Perspective
Prediction markets have been identified as a valuable mechanism to evaluate and select ideas in the corporate innovation processes, because these markets leverage the collective wisdom of the entire organization. However, initial studies report low prediction accuracies and their usefulness is being challenged. A better theoretical understanding of idea markets is needed. Based on economic theory, experimental economics, and existing prediction market research, we present such a theory for the accuracy of idea markets. The theory is used to explain why current markets may have low prediction accuracy, and also why idea markets have great potential for improving idea screening.
Volume (Year): 3 (2009)
Issue (Month): 2 (August)
|Contact details of provider:|| Web page: http://www.ubpl.co.uk/|
|Order Information:|| Web: http://www.predictionmarketjournal.com/index_files/Page418.htm Email: |
When requesting a correction, please mention this item's handle: RePEc:buc:jpredm:v:3:y:2009:i:2:p:39-64. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson, College of the Holy Cross)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.