IEM Noted in Prediction Markets Story

The idea of using futures markets to help predict everyday events is not quite as crazy as you might think. Derivatives markets are fluid enough to assemble and produce a price, or a probability, for any sort of event - however unpalatable. The University of Iowa has its own functioning futures market, the IOWA ELECTRONIC MARKET (IEM), for staff and students to use. It looks at a range of different markets, including presidential elections, Federal Reserve monetary policy issues, and the like. Students use their own money to back their judgment: their professors say it is a teaching aid.