Multi-period Trading Prediction Markets with Connections to Machine Learning
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Abstract (arXiv)
We present a new model for prediction markets, in which we use risk measures to model agents and introduce a market maker to describe the trading process. This specific choice on modelling tools brings us mathematical convenience. The analysis shows that the whole market effectively approaches a global objective, despite that the market is designed such that each agent only cares about its own goal. Additionally, the market dynamics provides a sensible algorithm for optimising the global objective. An intimate connection between machine learning and our markets is thus established, such that we could 1) analyse a market by applying machine learning methods to the global objective, and 2) solve machine learning problems by setting up and running certain markets.
Key facts. Cited by 5 papers in the map (data through 7 Oct 2026). First posted on arXiv 4 Mar 2014.
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Citing papers per year: 2021: 1; 2022: 1; 2023: 1; 2024: 0; 2025: 0; 2026: 2.
5 papers.
- 2021Design and Analysis of a Synthetic Prediction Market using Dynamic Convex Setscited by 3
- 2023Bayesian Regression Marketscited by 3
- 2022Price Interpretability of Prediction Markets: A Convergence Analysiscited by 0
- 2026Human-AI Collaboration for Estimating Scientific Replicabilitycited by 0
- 2026Decentralized Aggregation of LLM Predictions via Wagering Mechanismscited by 0
- 2026Decentralized Aggregation of LLM Predictions via Wagering Mechanisms5 Jul 2026
- 2026Human-AI Collaboration for Estimating Scientific Replicability19 Apr 2026
- 2023Bayesian Regression Markets23 Oct 2023
- 2022Price Interpretability of Prediction Markets: A Convergence Analysis18 May 2022
- 2021Design and Analysis of a Synthetic Prediction Market using Dynamic Convex Sets5 Jan 2021