Political prediction market
November 21, 2011 § Leave a comment
President Barack Obama has a 51% chance of being elected, according to the Intrade market, in which bettors buy and sell shares that pay off if their predictions are correct. How accurate is the collective wisdom of the market on political matters? More accurate than political pundits, according to the Washington Post and the New York times. http://tierneylab.blogs.nytimes.com/2008/11/24/bettors-beat-pundits/
While the Intrade market has been a more accurate barometer than public opinion polls, its data only occasionally gets used in news graphics, such as the New York Times chart above.
To read Intrade data as a percentage, you just convert the dollar amount so that, for instance, $6.70 is 6.7%.
In addition to a market on Obama’s chances, Intrade has odds on each GOP presidential candidate, House, Senate and Governors’ races, and whom Sarah Palin and Jim DeMint will endorse.