Prediction market prices under risk aversion and heterogeneous beliefs

DOI10.1016/j.jmateco.2017.02.005zbMath1395.91198OpenAlexW2593860271MaRDI QIDQ2358572

Xue-Zhong He, Nicolas Treich

Publication date: 15 June 2017

Published in: Journal of Mathematical Economics (Search for Journal in Brave)

Full work available at URL: http://hdl.handle.net/10453/123897

zbMATH Keywords

risk aversionheterogeneous beliefsfavorite-longshot biasprediction market

Mathematics Subject Classification ID

Microeconomic theory (price theory and economic markets) (91B24)

Related Items (4)

On prices and returns in commercial prediction markets ⋮ Risk aversion and information aggregation in binary‐asset markets ⋮ Convergence within binary market scoring rules ⋮ Far from the madding crowd: collective wisdom in prediction markets

Cites Work

• Aggregation of heterogeneous beliefs
• Whom should we believe? aggregation of heterogeneous beliefs
• Optimal Portfolios with One Safe and One Risky Asset: Effects of Changes in Rate of Return and Risk
• Consensus Consumer and Intertemporal Asset Pricing with Heterogeneous Beliefs
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