Prediction, Preference, and Idea Markets: How Corporations can Use the Wisdom of their Employees

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

This chapter evaluates the use of virtual stock markets in corporations. It presents an overview of the three different types of virtual markets-prediction, preference, and idea-used in corporations. Prediction markets forecast a specific market event, such as sales, software release dates, and the like, at some point in the future and have a real-world outcome which can be independently validated later with 100 percent certainty. A conceptual model is discussed in the chapter and is used as a reference for explaining why Hollywood Stock Exchange (HSX), Iowa Electronic Market (IEM), and InTrade achieve high forecast accuracy and the conditions required in corporations to achieve similar results. The chapter concludes with a discussion of the process for setting up a virtual stock market in companies as well as guidance on how to select a virtual stock market platform.

Original languageEnglish
Title of host publicationOpen Innovation
Subtitle of host publicationNew Product Development Essentials from the PDMA
Pages81-105
Number of pages25
ISBN (Electronic)9781118947166
DOIs
StatePublished - 13 Oct 2014

Keywords

  • Conceptual model
  • Corporations
  • Idea markets
  • Prediction markets
  • Preference markets
  • Virtual stock market

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