Electronic Market-Based Decision Support

Net Exchange's Policy Analysis Market (PAM) is designed to provide insight into correlations among future potential developments in and among countries. At its core, PAM is an automated futures market that allows traders to describe and trade contingentdevelopments in a form analogous to financial risk management instruments. In this specific application, PAM employs the practices and principles of information markets in the service of U.S. security policy to produce a decision support tool that offersthe potential of proactive analysis. In Phase I of Small Business Innovative Research (SBIR) effort DAAH01-02-C-R030, Net Exchange designed and bench-tested PAM. In Phase II, Net Exchange proposes to deploy and operate a PAM prototype focused on the MiddleEast with participants drawn from academia, the press, the policy research establishment, and policy practitioners.