Prediction markets: a powerful tool for supply network management?

Abstract

Purpose

The purpose of this paper is to evaluate the possible advantages of applying prediction markets to supply network management. Are the same encouraging results possible as in the election application of prediction markets?

Design/methodology/approach

This is a paper focused on the requirements and the possible results of the application based on the literature for supply network management and prediction markets. It discusses the potential of prediction markets to improve information management in supply networks.

Findings

The paper finds that prediction markets are a new instrument to collect the diverse information among the supply chain members, and to publish this information to the other members.

Practical implications

Prediction markets are able to improve the information basis for decision making in supply chains.

Originality/value

This paper shows the application of prediction markets in a supply network management case and the possibilities and limitations of prediction markets to collect, and publish information within the supply chain.

Citation

Hedtrich, F., Loy, J. and Müller, R.A.E. (2009), "Prediction markets: a powerful tool for supply network management?", British Food Journal, Vol. 111 No. 8, pp. 811-819. https://doi.org/10.1108/00070700910980937