Markets whose payoffs are linked to whether an uncertain event occurs are called _____ markets.

Question

Quizplus · Accepted Answer

Markets whose payoffs are linked to whether an uncertain event occurs are called prediction markets. In these markets, individuals trade assets whose value is linked to the outcome of an event, such as an election or the success of a new product launch, with the goal of making a profit. By aggregating the collective knowledge and insights of participants, prediction markets have been shown to provide highly accurate predictions about future events.

Markets Whose Payoffs Are Linked to Whether an Uncertain Event