The most mystifying thing about [prediction] markets is how little interest corporate America has shown in them . . . companies have remained, for the most part, indifferent to this source of potentially excellent information.
—James Surowiecki, The Wisdom of Crowds
In theory there is no difference between theory and practice. In practice there is.
—Yogi Berra, baseball manager and philosopher
EACH TIME I GIVE a talk on the wonders of prediction markets, the first raised hand comes attached to a question as to why so many companies are still uncomfortable with the concept. Why is there indifference to such a potentially great source of information? After all, executives accept the idea of shareholders trading ...