Conclusion

Prediction markets have continuously gained importance in academia and industry over the last couple of years. Nevertheless, it is a rather new field of research and numerous open questions still need to be tackled. There were two main objectives for this work. First, we wanted to discuss the key design elements of prediction markets which are crucial for their successful implementation. Results from several empirical studies reported in this work demonstrate the importance of designing such markets properly in order to derive valuable predictions. Second, we aimed at showing that prediction markets have immense predictive power and that they are useful in a broad field of applications. We thus discussed previous applications of such market in some detail