Prediction Markets as a Decision Support Tool

A project to explore extending electronic prediction markets for use as a decision aid tool. Investigation focuses on issues of a military interest but has broader implications. Issues explored include methods to identify suitable issues, relevant events,screen events for suitability for electronic markets, identification of market participants, and identification of appropriate incentives. Test markets are designed and demonstrations planned. Demonstration applications are planned in anticipation of usingresults in quasi operationa decision making settings. At least two such demonstrations are planned for full implementation through analsysis of effectivity. Additional demonstrations will be explored and begun. Supporting laboratory experiments and fielddemonstrations will be employed to further the theory of application to different decision making conditions. Tools to enhance the operation and ease the application to different settings will be developed.