Description of the IEM
Created in 1988
- Now run internationally during dozens of elections
- Run on more than 40 elections in 13 countries and for dozens of other events
Prices predict
- The vote totals candidates will receive in elections
- Election winners, or
- Publicly available information about some other event
Common market characteristics
- No explicit transaction costs
- Each market has a complete set of event specific contingent claims (“unit portfolios”)
- Unit portfolios can be purchased from or sold to the exchange for $1
- Contract markets are continuous, electronic DA’s