The dream situation for prediction markets

If you might invent one thing to fulfil an economist’s dream, it will look an terrible lot like a prediction market. A world the place each unsure future might be priced, hedged and insured towards? Kenneth Arrow and Gérard Debreu would approve. A market mechanism to co-ordinate the decentralised knowledge of crowds, making certain the accuracy of such costs? Adam Smith and Friedrich Hayek sought simply that.