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Equilibrium in prediction markets with buyers and sellers

Author

Listed:
  • Agrawal, Shipra
  • Megiddo, Nimrod
  • Armbruster, Benjamin

Abstract

Prediction markets with buyers and sellers of contracts on multiple outcomes are shown to have unique equilibrium prices, which can be computed in polynomial time.

Suggested Citation

  • Agrawal, Shipra & Megiddo, Nimrod & Armbruster, Benjamin, 2010. "Equilibrium in prediction markets with buyers and sellers," Economics Letters, Elsevier, vol. 109(1), pages 46-49, October.
    • Handle: RePEc:eee:ecolet:v:109:y:2010:i:1:p:46-49
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    References listed on IDEAS

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    1. Manski, Charles F., 2006. "Interpreting the predictions of prediction markets," Economics Letters, Elsevier, vol. 91(3), pages 425-429, June.
    2. Berg, Joyce E. & Nelson, Forrest D. & Rietz, Thomas A., 2008. "Prediction market accuracy in the long run," International Journal of Forecasting, Elsevier, vol. 24(2), pages 285-300.
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    Cited by:

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    2. Gustav Axén & Dominic Cortis, 2020. "Hedging on Betting Markets," Risks, MDPI, vol. 8(3), pages 1-14, August.

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