The accuracy of prediction markets has been documented both for markets based on real money and those based on play money. To test how much extra accuracy can be obtained by using real money versus play money, we set up a real-world online experiment pitting the predictions of TradeSports.com (real money) against those of NewsFutures.com (play money) regarding American Football outcomes during ...

Ross Levine and Sara Zervos Abstract: Do well-functioning stock markets and banks promote long-run economic growth? This paper shows that stock market liquidity and banking development both positively, predict growth, capital accumulation, and productivity improvements when entered together in regressions, even after controlling for economic and political factors. The results are consistent wit...

The paper investigates the self-stabilization of hierarchically structured markets. We propose a new approach that is motivated by the physical structure of the energy grid and generalizes classical market structures in a natural way. Hierarchical markets have several advantages compared to monolithic markets, i.e., improved reliability and scalability, locality of information, and proximity of...

Robust Estimation in Nonlinear Modeling of Volatility Transmission in Stock Market S.B. Ebrahimi * Department of Industrial Engineering, K.N.Toosi University of Technology, Tehran, Iran * Email: [email protected] (Received: 12 September 2015; Revised: 8 May 2016; Accepted: 24 June 2016) Volatility transmission means the connection between different markets in a way that volatility can be tr...

Price volatility analysis has been reported in the literature for most competitive electricity markets around the world. However, no studies have been published yet that quantify price volatility in the Ontario electricity market, which is the focus of the present paper. In this paper, a comparative volatility analysis is conducted for the Ontario market and its neighboring electricity markets....

Several authors have argued that because modern computing and communications technologies reduce buyer search costs and other market inefficiencies, there should be intense price competition between sellers in electronic markets. This paper examines this prediction using data on the airline ticket offerings of online travel agents (OTA). We find that different OTAs offer tickets with substantia...

legal actions remains sufficiently predictable. Such predictions on legal conflicts have to be shared among economic actors to stabilize mutual expectations of behavior. This stability then helps to reduce legal risks. Predictability is not necessarily related to precise legal knowledge. It is sufficient to know when legal specialists have to get involved. Economic actors prepare for such situa...

Entrepreneurs in electronic markets move in industries where a strong corporate brand can deliver competitive advantage through differentiation. It not only facilitates increased attention. Despite ever-increasing followers and me-too products, it enables a company to build a positive image on behalf of the relevant target groups – be they consumers/customers, shareholders, employees, or indust...