Prediction Markets and The Wisdom of Crowds

FT Predict is more than just a game. Predictive markets collect the wisdom of the crowd in a single dynamic price unit that can be far more sensitive to changes in the market than standard survey-based research. And a growing number of today’s leading companies embrace predictive market models in order to harness the wisdom of their own crowds to improve decision-making.

In The Wisdom of Crowds, prediction markets are praised for being a useful application of crowd intelligence. They sounded interesting when I read about them, now I’m going to be part of one.

(Side note: the book has an excellent Wikipedia entry.)