IEM Noted As Election Market

In an article about prediction markets' use in business, it's noted that in 1988 a handful of University of Iowa economists, surprised by Jesse Jackson's win in the Michigan presidential primary, set up a legal market for elections. Called the IOWA ELECTRONIC MARKETS, it eventually allowed people to buy as much as $500 in stock -- initially through on-campus terminals -- in presidential and congressional races. To date it has traded predictions on more than 250 candidates in 12 countries and has proven a better forecaster than the best opinion polls. The article originally appeared in BUSINESS 2.0.