Deciding with the Crowd Wisdom : An Overview of Issues Facing the Corporate Application of Prediction Markets

Authors

  • Henry Asante Antwi  School of Management, Jiangsu University, 301 Xuefu Road, Zhenjiang, Jiangsu, P.R. China and Institute of Medical Insurance and Healthcare Management, Jiangsu University, Zhenjiang, Jiangsu, P.R. China
  • Zhou Lulin  School of Management, Jiangsu University, 301 Xuefu Road, Zhenjiang, Jiangsu, P.R. China and Institute of Medical Insurance and Healthcare Management, Jiangsu University, Zhenjiang, Jiangsu, P.R. China
  • Ethel Asante Antwi  School of Management, Jiangsu University, 301 Xuefu Road, Zhenjiang, Jiangsu, P.R. China amd School of Graduate Studies, Ghana Technology University, Private Mail Bag, Abeka-Accra, Ghana
  • Basil Kusi  School of Management, Jiangsu University, 301 Xuefu Road, Zhenjiang, Jiangsu, P.R. China
  • Tehzeeb Mustafa  School of Management, Jiangsu University, 301 Xuefu Road, Zhenjiang, Jiangsu, P.R. China and Institute of Medical Insurance and Healthcare Management, Jiangsu University, Zhenjiang, Jiangsu, P.R. China
  • Zinet Abdullai  School of Management, Jiangsu University, 301 Xuefu Road, Zhenjiang, Jiangsu, P.R. China

Keywords:

Prediction Markets , Decision Making Tools , Iowa Electronic Markets , Hollywood Stock Exchange , General Electric , Virtual Concept Testing , PAM

Abstract

Prediction markets (PM) have emerged as a major tool for contemporary decision making tools within economic, financial and psychological literature. It is arguably one of the most efficient markets in history. Although applicable within financial markets, the principles of PM can also be applied within political frameworks, corporate environments public enterprise management. That is why since its discovery; other areas of human endeavour have applied prediction markets for organization-wide decision making with different outcomes and recommendations for improvement in prediction markets. This review examines the history of prediction markets, its ontology, epistemology and paradigm. It also examines the early applications of prediction market to institutional decision making and how early challenges have strengthened modern prediction markets. The key issues facing prediction market as a decision making tool is revisited in the last section before summarizing our findings and future research direction.

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IInternational Journal of Scientific Research in Computer Science, Engineering and Information Technology

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Published

2017-02-28

Issue

Volume 2, Issue 1, January-February-2017

Section

Research Articles

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How to Cite

[1]
Henry Asante Antwi, Zhou Lulin, Ethel Asante Antwi, Basil Kusi, Tehzeeb Mustafa, Zinet Abdullai, " Deciding with the Crowd Wisdom : An Overview of Issues Facing the Corporate Application of Prediction Markets, IInternational Journal of Scientific Research in Computer Science, Engineering and Information Technology(IJSRCSEIT), ISSN : 2456-3307, Volume 2, Issue 1, pp.113-118 , January-February-2017.