Monday, September 10

Letting the Free Market Decide

The University of Iowa has famously run an electronic futures market called the IEM that has been more accurate than most polls in predicting the outcome of the presidential elections--sort of like putting your money where your mouth is. The key to its success, I think, is that it asks people to speculate on who they think will win, rather than who they support and to shell out cash to "vote." Emotions run high in politics and arguably, less so in the stock market.

Check out the IEM.

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