Information markets: A research landscape

Abstract

Information markets are mechanisms that allow a group of geographically dispersed participants to reach and continuously reevaluate consensus by discovering the value of alternative outcomes. Evidence suggests that these markets can produce better quality decisions than a small subset of selected decision makers: a finding in direct opposition to the trust we place on expertise. In challenging and uncertain decision-making arenas, information markets offer an interesting, and somewhat counter-intuitive approach. In practice, information markets may be used in combination with other decision-making methods, but these market-based mechanisms offer many advantages. This paper presents an information market typology and explores some of the challenges raised by different market applications. Market types include event and estimation-based prediction markets, decision markets, and idea markets. An integrated research landscape model and research propositions are presented to help guide continuing research in this area. © 2009 by the authors.