blesto (31.71)

One way to let the Market decide.

September 02, 2011 – Comments (2)

Playing political futures contracts.

Federal Reserve Bank of Cleveland commentary on Iowa Electronic Markets.

"...The Iowa Electronic Markets (IEM) are a set of experimental markets that allow for very wide participation. They were created in 1988 by University of Iowa faculty as a tool for studying the behavior of individual traders and markets as a whole. The IEM are futures markets— markets that trade assets whose ultimate value depends on the outcome of some future event. A variety of markets are operated. Some are based on upcoming political events such as elections, some on the future decisions of policymakers, and some even on the box-office receipts of soon-to-be-released movies. Stakes are fairly modest: An account can be opened for as little as $5 and no more than $500...."

A real futures market operated by The University of Iowa's College of Business.

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