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Title:
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UNDERSTANDING TRADER HETEROGENEITY IN PREDICTION MARKETS |
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Author(s):
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Dezon Finch , Donald J. Berndt |
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ISBN:
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978-972-8924-49-2 |
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Editors:
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Sandeep Krishnamurthy and Pedro Isaías |
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Year:
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2007 |
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Edition:
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Single |
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Keywords:
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Information Markets, Prediction Markets, Trading Strategies |
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Type:
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Full Paper |
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First Page:
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27 |
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Last Page:
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34 |
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Language:
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English |
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Cover:
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Full Contents:
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click to dowload 
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Paper Abstract:
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Information Markets have been shown to accurately predict future uncertain events and could be used as decision
support systems. The design features for Information Markets are far from established. By understanding trader
behavior patterns we can evaluate their effect on user surplus, then we can make changes in the markets design to
encourage those behaviors that add to the markets predictive accuracy. We show that there are differences in trader
behavior patterns and demonstrate a systematic way of uncovering groups who share common trading strategies. We
also demonstrate how those differences influence trader surplus. |
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