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Tricking the Stock Market

One idea for a futuristic short-story we’ve been kicking around has turned out to not be so futuristic. As technology begins to dominate our lives and interactions, strange things begin to happen. Instant interactions we didn’t expect along with strange consequences. For those who know how to harness these feedback loops, there is an opportunity to exploit the system, just like there always has. This time it is digital and instantaneous.

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Introduction to Prediction Markets

When you gather a suitably diverse group of people together, ask them a question and average their answers, the result tends to be more accurate than the result of any one person including experts. The implication of this, is that the crowd as a whole can make better informed judgements than traditional experts. There just needs to be an ideal way to extract those tiny bits of relative information from individuals in a consistent manner. Enter the prediction market.

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