Improving decisions with market information: an experiment on corporate prediction markets

Volume: 24, Issue: 1, Pages: 143 - 176
Published: May 4, 2020
Abstract
We conduct a lab experiment to investigate an important corporate prediction market setting: A manager needs information about the state of a project, which workers have, in order to make a state-dependent decision. Workers can potentially reveal this information by trading in a corporate prediction market. We test two different market designs to determine which provides more information to the manager and leads to better decisions. We also...
Paper Details
Title
Improving decisions with market information: an experiment on corporate prediction markets
Published Date
May 4, 2020
Volume
24
Issue
1
Pages
143 - 176
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