Big Ideas: The Market's Last Frontier

9 Pages Posted: 18 Oct 2005

See all articles by Robert W. Hahn

Robert W. Hahn

Technology Policy Institute; University of Oxford, Smith School

Paul C. Tetlock

Columbia Business School - Finance

Abstract

Information markets are markets for contracts that yield payments based on the outcome of an uncertain future event, such as a presidential election. They can provide real-time information on the likely benefits and costs of different kinds of policies and projects.

We argue that information markets combined with pay-for-performance contracts have the potential to revolutionize the way the government, the non-profit world, and the private sector do business. Moving to a performance-based policy paradigm could have great benefits for consumers and the economy. In addition to providing economic benefits, this approach could also promote greater accountability and transparency in the development of policy.

Suggested Citation

Hahn, Robert W. and Tetlock, Paul C., Big Ideas: The Market's Last Frontier. Milken Institute Review, Vol. 7, No. 1, pp. 83-89, 2005, AEI-Brookings Joint Center Working Paper No. 04-17, Available at SSRN: https://ssrn.com/abstract=821450

Robert W. Hahn (Contact Author)

Technology Policy Institute ( email )

1401 Eye St. NW
Suite 505
Washington, DC 20005
United States

University of Oxford, Smith School ( email )

Oxford
United Kingdom

Paul C. Tetlock

Columbia Business School - Finance ( email )

3022 Broadway
New York, NY 10027
United States

HOME PAGE: http://www0.gsb.columbia.edu/faculty/ptetlock/

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