How manipulable are prediction markets?
Fuente:
arXiv
Guardado en:
| Autores principales: | , |
|---|---|
| Formato: | Preprint |
| Publicado: |
2025
|
| Materias: | |
| Acceso en línea: | |
| Etiquetas: |
Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
|
| _version_ | 1866912260487643136 |
|---|---|
| author | Rasooly, Itzhak Rozzi, Roberto |
| author_facet | Rasooly, Itzhak Rozzi, Roberto |
| contents | In this paper, we conduct a large-scale field experiment to investigate the manipulability of prediction markets. The main experiment involves randomly shocking prices across 817 separate markets; we then collect hourly price data to examine whether the effects of these shocks persist over time. We find that prediction markets can be manipulated: the effects of our trades are visible even 60 days after they have occurred. However, as predicted by our model, the effects of the manipulations somewhat fade over time. Markets with more traders, greater trading volume, and an external source of probability estimates are harder to manipulate. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2503_03312 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | How manipulable are prediction markets? Rasooly, Itzhak Rozzi, Roberto General Economics Economics In this paper, we conduct a large-scale field experiment to investigate the manipulability of prediction markets. The main experiment involves randomly shocking prices across 817 separate markets; we then collect hourly price data to examine whether the effects of these shocks persist over time. We find that prediction markets can be manipulated: the effects of our trades are visible even 60 days after they have occurred. However, as predicted by our model, the effects of the manipulations somewhat fade over time. Markets with more traders, greater trading volume, and an external source of probability estimates are harder to manipulate. |
| title | How manipulable are prediction markets? |
| topic | General Economics Economics |
| url | https://arxiv.org/abs/2503.03312 |