IEM Noted As "Granddaddy" of Information Markets

In an article profiling Robin Hanson, founder of the Policy Analysis Market, a Pentagon-sponsored online futures market that would have allowed traders to speculate on wars, assassinations and terrorism, several other prediction markets are noted, including the Iowa Electronic Markets. In 1988, IEM co-founder ROBERT FORSYTHE launched the "granddaddy" of information markets at the University of Iowa. In a study published three years ago, Forsythe and his colleagues found that over 12 years -- a period covering 41 elections in 13 countries -- the IEM consistently outperformed opinion polls in forecasting election outcomes.