UsableMarkets

The prediction markets for the Nobel Prize in Economics were not very predictive. The markets at InTrade were only open from Oct 9th to today, and do not appear to have generated a lot of volume … or any for that matter.

In addition, the winners were not even on the list of contracts you could have purchased. To win, you would have had to purchase contracts in “Other.”

What did Ostrom and Williamson study? Certainly not efficient markets!

In truth, given the biases (perhaps exposed in the Obama peace prize) it would have been a stretch for them to award anyone who studied (much less championed) free markets.

According to the AP:

The Royal Swedish Academy of Sciences cited Ostrom “for her analysis of economic governance,” saying her work had demonstrated how common property can be successfully managed by groups using it.

Williamson, the academy said, developed a theory where business firms serve as structures for conflict resolution.

Certainly not the type of stuff that makes Wall Streeters salivate onto their ties.

~alex