Prediction Markets

question 169

Multiple Choice

Prediction markets:

• A) are speculative markets designed so that prices can be interpreted as probabilities and used to make predictions.
• B) are not very reliable sources of information.
• C) incentivize random guessing about the future.
• D) are widely subsidized by the government to improve information-gathering.

---

Definitions:

Differentiated Products

Goods or services that are distinguished from each other by specific features, branding, or quality, making them non-perfect substitutes in the eyes of consumers.