How Prediction Markets Turn Crowd Belief Into Probability
Prediction markets turn collective knowledge into live probability estimates. Here’s how they work, how probabilities are represented in markets, and why prices aggregate information better than polls or pundits. The Room That Couldn’t Agree Imagine asking 50 intelligent, informed people the same question: “What’s the probability that the Federal Reserve cuts interest rates at its next meeting?” You’d get 50 different answers. Some would say 30%. Others would say 70%. A few would say they have no idea. All […]