Google Employees Trade on Prediction Market
July 10, 2008 | BloombergGoogle has created an internal trading system. Using a faux currency called the Gooble, 2,000 workers have made wagers on about 370 subjects, ranging from the success of the company's Gmail service to the quality of a new "Star Wars" movie. Academic studies show these so-called prediction markets work as financial modeling tools. Google managers use the results as a reference in strategy meetings and crunch the data to see how employees behave. After finding that traders got bullish about meeting goals following a climb in the company's stock, Google started examining how productivity and optimism are connected. The UNIVERSITY OF IOWA'S electronic market, started in 1988, lets students invest $5 to $500 to trade on who will win the popular vote in the next U.S. presidential election.