In Commentary, Foresight, Practical Articles

Foresight: The International Journal of Applied Forecasting, Issue 23, Fall 2011, Pages 46 – 47

We agree with Andreas Graefe on these major points: (i) that there are real benefits as well as considerable potential for corporate prediction markets (CPM); (ii) that there are mechanisms for overcoming the problem of “thin” markets; and (iii) that prediction markets should be considered as a supplement to – rather than a replacement for – existing forecasting methods. Nevertheless, challenges remain to incorporating a CPM into an organization’s culture, and these should not be taken lightly. Companies need to acquire pertinent evidence on the preconditions for successful implementation of a CPM.