Berg Explains IEM Trading

University of Iowa professor JOYCE BERG explained the Iowa Electronic Market on the Motley Fool Radio Show, saying that the IEM trades futures contacts on political candidates, and prices aggregate the beliefs of its traders in a vote share or a winner-takes-all market. As a forecasting too, Berg said the IEM's average prediction error is about 1.3 percent. The IEM is also running a market on the incidence of flu cases in Iowa.