Designing Markets for Prediction

We pay particular attention to the design process, highlighting the objectives and properties that are important in the design of good prediction mechanisms. Whereas game theorists ask what outcome results from a game, mechanism designers ask what game produces a desired outcome. In this sense, game theorists act like scientists and mechanism designers like engineers. In this article, we survey a number of mechanisms created to elicit predictions, many newly proposed within the last decade. We focus on the engineering questions: How do they work and why?