On Prediction Markets

Really interesting Foreign Policy article on the possibility of legalizing prediction markets in the US. Generally it’s chock full of interesting stuff about how prediction markets work and why they should be legal, but this idea really blew me away: “If the CFTC rule change goes through, client companies could buy contracts to hedge against unforeseen events that could damage their business, be it the collapse of the Bolivian government or a renewed outbreak of war in Georgia.” Pretty nuts, huh?

November 10, 2008