Implementing control mutuality using prediction markets: a new mechanism for risk communication

Abstract

In this article prediction markets are presented as an innovative technology that can facilitate effective risk communication. The application of prediction markets in this context is an opportunity to reconcile the disparate approaches currently discussed in the risk communication literature. We demonstrate that control mutuality is uniquely achieved through the use of the prediction market mechanism and it is thus an innovative and in some cases optimal technology for use in risk communication in both public and private sector organisations.

Keywords:

• prediction markets
• risk communication
• control mutuality

Notes

1. Examples of these include Inkling Markets (www.inklingmarkets.com) and Nosco (www.nosco.dk).