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Editor Login


Convener in chief:


David Lazer
(Methodology, Networked Governance)

Editors:


Stanley Wasserman
(Current Trends, Methodology, Social Networks)

Guy Stuart
(Economic Sociology, Finance)

Allan Friedman
(Simulations)

Nathan Eagle
(Technology, Social Computing, Powerlaws, Current Trends)

Ben Waber
(Technology, Social Computing)
Ines Mergel
(Knowledge Sharing, Social Computing, Social Software, Current Trends)

Maria Binz-Scharf
(Qualitative Methodology, Knowledge Sharing, eGovernment)

Alexander Schellong
(Admin, eGovernment, Citizen Relationship Management)

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    « Large Scale Real-Time Behavioral Feedback with Sensors | Main | Fun with numbers: did Obama redraw the political map? »

    3 November 2008

    manipulation of intrade

    Interesting piece in CQ on the manipulation of intrade.

    Two excerpts:


    An internal investigation by the popular online market Intrade has revealed that an investor's purchases prompted "unusual" price swings that boosted the prediction that Sen. John McCain will become president.

    Over the past several weeks, the investor has pushed hundreds of thousands of dollars into one of Intrade's predictive markets for the presidential election, the company said.

    ...
    Pundits and politicians have used Intrade to track the fortunes of the two presidential candidates. Through the site, begun in 1999 and incorporated in Ireland, traders buy and sell "contracts" that function as stocks, allowing investors to gamble on the outcome of political, cultural, or even geological events such as the weather.

    The company asserts and experts have found that the Intrade market is generally more accurate in predicting the outcome of major events than other leading indicators, including public opinion polls. But the relatively small scale of the market and its lack of outside regulation could leave the system vulnerable to unscrupulous investors, scholars of predictive markets say.

    Posted by David Lazer at November 3, 2008 6:31 PM