Gruca Discusses Movie Futures Markets

The University of Iowa operates a movie futures exchange on the Iowa Electronic Markets, limited to academic traders making bets with $500 in real money. Traders have a very difficult time predicting how movies will do, says Thomas Gruca, professor at the University's Tippie College of Business. Based on a study of 21 movie futures traded since 1998, the Iowa exchange has had an average error rate of 38 percent, he said.