Foundations of Prediction Markets
Chen, Shu-Heng / Tung, Chen-Yuan / Yeh, Jason / Chie, Bin-Tzong / Tai, Chung-Ching / Lin, Hung-Wen
A prediction market is designed to trade and predict future events. This book provides a comprehensive and multidisciplinary treatment of the prediction market, explaining what it is, how it works, and why it may fail, from the theoretical, computational, and statistical (or machine learning) perspectives. The book begins with the theoretical aspect by reviewing Friedrich Hayek's work on markets, which he viewed as discovery processes, and pro...