Information markets are mechanisms that allow a group of geographically dispersed participants to reach and continuously reevaluate consensus by discovering the value of alternative outcomes. Evidence suggests that these markets can produce better quality decisions than a small subset of selected decision makers: a finding in direct opposition to the trust we place on expertise. In challenging and uncertain decision-making arenas, information markets offer an interesting, and somewhat counter-intuitive approach. In practice, information markets may be used in combination with other decision-making methods, but these market-based mechanisms offer many advantages. This paper presents an information market typology and explores some of the challenges raised by different market applications. Market types include event and estimation-based prediction markets, decision markets, and idea markets. An integrated research landscape model and research propositions are presented to help guide continuing research in this area.
Jones, J. L., Collins, R. W., & Berndt, D. J. (2009). Information Markets: A Research Landscape. Communications of the Association for Information Systems, 25, pp-pp. https://doi.org/10.17705/1CAIS.02527