The advantages of prediction markets include:
A)the ability of predicted outcomes to always beat actual outcomes in markets.
B)the fact that such markets encourage sales teams and traders at firms to divulge the true information on expected
Outcomes.
C)the fact that such markets are only useful at forecasting political outcomes.
D)the ability for strong prediction markets to swing actual market outcomes towards the predicted outcome.

Question

Quizplus · Accepted Answer

Prediction markets encourage sales teams and traders to share their true predictions, which can be valuable information for decision making. The other options are incorrect as predicted outcomes cannot always beat actual outcomes, prediction markets are not only useful for political outcomes, and prediction markets do not have the ability to directly swing actual market outcomes.

The Advantages of Prediction Markets Include