For B2B Market Research Professionals

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	July 14, 2008 Prediction Markets: Wisdom Of The Crowd Comes To The Enterprise by G. Oliver Young with Peter Burris, Madiha Ashour	Average: 6  (3 ratings)

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Executive Summary

The "wisdom of crowds" is capturing the attention of corporate strategists across the globe, and, as a result, many are now looking to prediction markets — speculative markets in which traders collectively predict future events — to generate collective intelligence. For enterprises, prediction markets bring unique value: They focus on the future, aggregate diverse information pools that can be applied to multiple decision-making domains, create streams of actionable data suitable for executive decision-making, and can often cut through corporate politics and pressures at lower cost than traditional forecasting methods. Market researchers will, however, need to have an active hand in the management of these mechanisms, ensuring strong management support, the right incentives for traders, and a focus on appropriate questions. When executed properly, the value to the enterprise is enormous; as a result, Forrester believes that prediction markets will ultimately find a permanent home in the market research toolbox.

TABLE OF CONTENTS

• Prediction Markets Harness The Wisdom Of The Crowd To Predict The Future

RECOMMENDATIONS

• Add Prediction Markets To Your Standard Market Research Toolbox

WHAT IT MEANS

• View Prediction Markets As Addition, Not Substitution
• Supplemental Material
• Related Research Documents

This is an excerpt