One advantage of prediction markets is that they create incentives for traders to relay:
A) specific information.
B) detailed information.
C) advanced information.
D) accurate information.

Question

Quizplus · Accepted Answer

Prediction markets incentivize traders to provide accurate information because their profits depend on the accuracy of their predictions. Traders who provide inaccurate information will likely lose money and therefore have a strong incentive to provide as accurate information as possible.

One Advantage of Prediction Markets Is That They Create Incentives