The results of recent studies on prediction markets are encouraging. Prior experience demonstrates that markets with different incentive schemes predicted uncertain future events ...
We study the equilibrium behavior of informed traders interacting with market scoring rule (MSR) market makers. One attractive feature of MSR is that it is myopically incentive com...
Yiling Chen, Stanko Dimitrov, Rahul Sami, Daniel M...
We explore the striking mathematical connections that exist between market scoring rules, cost function based prediction markets, and no-regret learning. We first show that any c...
The design of algorithms on complex networks, such as routing, ranking or recommendation algorithms, requires a detailed understanding of the growth characteristics of the network...
Christian Borgs, Jennifer T. Chayes, Constantinos ...
We construct a novel agent-based model of prediction markets in which putative human qualities like learning, reasoning, and profit-seeking are absent. We show that the prices whi...