A prediction market is a:
A) perfectly functioning futures market, so that futures output can be interpreted as probabilities and used to make predictions.
B) perfectly functioning futures market, so that futures prices can be interpreted as probabilities and used to make predictions.
C) speculative market carefully designed so that output can be interpreted as probabilities and used to make predictions.
D) speculative market carefully designed so that prices can be interpreted as probabilities and used to make predictions.

Question

Quizplus · Accepted Answer

Prediction markets are speculative markets designed such that the prices can be interpreted as probabilities, which can then be used to make predictions about future events.

A Prediction Market Is A