Using Information Aggregation Markets for Decision Support

Information Aggregation Markets, often referred to as prediction markets, are markets that aredesigned to aggregate information from a disparate pool of human individuals to make predictionsabout the likely outcome of future uncertain events. This paper looks at how InformationAggregation Markets can be incorporated into the standard body of decision making theory. Itexamines how Information Aggregation Markets can be used as decision support systems, andprovides empirical evidence from a wide variety of sources as to the effectiveness and practicalityof Information Aggregation Markets. Finally, this paper details some future research questions tobe addressed in the area of Information Aggregation Markets.