Prediction markets are exchange platforms that specialize in offering event contracts (i.e., contracts that allow parties to trade on the occurrence or nonoccurrence of specific events). Prediction markets have rapidly expanded in recent years, facilitated by judicial decisions and changes in regulatory posture, with…

The past two years have witnessed the dramatic growth of prediction markets—i.e., online platforms that allow users to buy or sell contracts with payoffs tied to the occurrence or nonoccurrence of specific events, such as sporting event outcomes, political election results, and macroeconomic or geopolitical developmen…

Prediction markets are exchange platforms that specialize in offering event contracts. Event contracts refer to contracts with a binary payoff structure tied to the occurrence or non-occurrence of a specific event. Users purchase and sell these event contracts, continuously establishing prices. The price of event cont…