An axiomatic characterization of wagering mechanisms

A-Tier
Journal: Journal of Economic Theory
Year: 2015
Volume: 156
Issue: C
Pages: 389-416

Authors (7)

Lambert, Nicolas S. (University of Southern Califor...) Langford, John (not in RePEc) Wortman Vaughan, Jennifer (not in RePEc) Chen, Yiling (not in RePEc) Reeves, Daniel M. (not in RePEc) Shoham, Yoav (not in RePEc) Pennock, David M. (not in RePEc)

Score contribution per author:

0.575 = (α=2.01 / 7 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We construct a budget-balanced wagering mechanism that flexibly extracts information about event probabilities, as well as the mean, median, and other statistics from a group of individuals whose beliefs are immutable to the actions of others. We show how our mechanism, called the Brier betting mechanism, arises naturally from a modified parimutuel betting market. We prove that it is essentially the unique wagering mechanism that is anonymous, proportional, sybilproof, and homogeneous. While the Brier betting mechanism is designed for individuals with immutable beliefs, we find that it continues to perform well even for Bayesian individuals who learn from the actions of others.

Technical Details

RePEc Handle
repec:eee:jetheo:v:156:y:2015:i:c:p:389-416
Journal Field
Theory
Author Count
7
Added to Database
2026-01-25