Iowa Electronic Markets
| Iowa Electronic Markets | |
| |
| Founded | 1988 |
|---|---|
| Headquarters | Iowa City, Iowa, United States |
| Products | Real-money political and economic prediction markets for education and research |
| Key People | George Neumann, Robert E. Forsythe, Forrest Nelson, Thomas A. Rietz, Thomas S. Gruca |
| @IEMatUIowa | |
| Web site | iem.uiowa.edu |
| Releases | Organization News |
Iowa Electronic Markets (IEM) is an online, real-money futures market operated by the Tippie College of Business at the University of Iowa. IEM enables participants to trade contracts on the outcomes of real-world events—including political elections and economic indicators—for educational and research purposes, and is notable for its academic focus and long-standing use as a forecasting tool.[1]
History[edit]
The Iowa Electronic Markets was established in 1988 by faculty at the University of Iowa to provide a platform for experimental economics and to study trading behavior in naturally occurring markets.[2] It grew out of earlier academic projects, including the Iowa Political Stock Market, and was developed by a team led by George Neumann, Robert E. Forsythe, and Forrest Nelson.
The IEM operates under a "no-action" letter from the Commodity Futures Trading Commission (CFTC), which allows real-money trading on the platform—subject to strict investment limits—without requiring the same registration as commercial futures exchanges.[3]
Products and Services[edit]
IEM runs several types of prediction markets, most prominently related to U.S. political elections and key economic events.[4] The most widely recognized are the Vote-Share and Winner-Takes-All markets, which allow traders to buy and sell contracts whose prices reflect the collective forecast for a candidate's popular vote share or the likelihood of winning.
Contracts are structured as bundles so that the sum of all payoffs equals $1, mirroring actual market structures and providing risk-free options. The IEM imposes trading limits between $5 and $500 per participant, and the markets do not charge transaction fees.
Key People[edit]
The founding and leadership of the IEM include University of Iowa faculty members: George Neumann (economics), Robert E. Forsythe (business), Forrest Nelson (economics), Thomas S. Gruca (marketing), and Thomas A. Rietz (finance), among others.[5] The IEM continues to be managed by an academic team at the Tippie College of Business.
References[edit]
- ↑ Iowa Electronic Markets: IEM. Iowa Electronic Markets.
- ↑ Iowa electronic markets. Federal Reserve Bank of Cleveland.
- ↑ Iowa Electronic Markets. University of Iowa ITS.
- ↑ Iowa Electronic Markets: Forecasting the 2024 U.S. Presidential Election. University of Iowa Tippie College of Business.
- ↑ About Us - IEM. Iowa Electronic Markets.