Prediction Markets are based on the proven concept that the market place, and often, a better organizer of insights and predictor of the future than experts or pollsters are.

The concept was first developed in 1988 at the University of Iowa to predict the outcome of US presidential elections, and it has since evolved into a an effective tool for corporations and governments to develop a realistic projections of future events.

Inherent characteristics and advantages of Prediction Markets provide managers a relatively cost effective, accurate and quantifiable projection on how their organization is performing, overcoming information shortages and identifying potential failures.

Similar to financial markets, participants visit an online platform and place a bid (usually with play money) on the probability of an event. The incentive structure is the crucial factor to increase the accuracy of these market driven projections, compared with other public and private data collection methods.

A large body of research demonstrates how Prediction Markets produce more accurate results than other forecasting techniques. Links to relevant articles that have appeared in the press are cited to the right of this page.