System and method of making markets for a finite subset of orders placed across continuous and countably infinite outcome spaces
First Claim
1. A computer system for a prediction market, comprising:
- a prediction market engine for providing services to support prediction markets aggregating information about orders placed on continuous subspaces of a continuous outcome space; and
a storage operably coupled to the prediction market engine for storing the orders placed on the continuous subspaces of the continuous outcome space.
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Abstract
An improved system and method is provided for making markets for a finite subset of orders across continuous and countably infinite outcome spaces. To do so, a prediction market engine may be provided to support prediction markets by aggregating information about orders specifying a continuous subspace of a continuous outcome space and orders specifying a subset of a countably infinite set of outcomes. The pricing and/or quantities for orders received may be determined, a response may be sent to traders indicating the pricing or quantities of orders for payment, and the amount owed for accepted orders may be collected. Winning accepted orders may be identified and payout may be made for winning accepted orders. Advantageously, the present invention may support aggregation of more information from market participants in a prediction market to forecast the likelihood of the occurrence of a certain event.
42 Citations
20 Claims
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1. A computer system for a prediction market, comprising:
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a prediction market engine for providing services to support prediction markets aggregating information about orders placed on continuous subspaces of a continuous outcome space; and a storage operably coupled to the prediction market engine for storing the orders placed on the continuous subspaces of the continuous outcome space. - View Dependent Claims (2, 3, 4)
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5. A computer-implemented method of operating a prediction market, comprising:
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receiving a plurality of orders specifying a continuous subspace of a continuous outcome space from a plurality of traders; determining to accept at least one order of the plurality of orders specifying the continuous subspace of the continuous outcome space; collecting an amount for the at least one order of the plurality of orders accepted from at least one trader of the plurality of traders; identifying at least one winning accepted order; and paying out a winning amount for the at least one winning accepted order. - View Dependent Claims (6, 7, 8, 9, 10, 11, 12, 13, 14, 15)
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16. A computer system for a prediction market, comprising:
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means for receiving a plurality of orders specifying a subset of a countably infinite set of outcomes from a plurality of traders; means for determining to accept at least one order of the plurality of orders specifying the subset of the countably infinite set of outcomes; means for collecting an amount for the at least one order of the plurality of orders accepted from at least one trader of the plurality of traders; means for identifying at least one winning accepted order; and means for paying out a winning amount for the at least one winning accepted order. - View Dependent Claims (17, 18, 19, 20)
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Specification