Chen, YilingRuberry, Michael Edward2013-10-182013-10-182013Ruberry, Michael Edward. 2013. Prediction Markets: Theory and Applications. Doctoral dissertation, Harvard University.http://dissertations.umi.com/gsas.harvard:11174http://nrs.harvard.edu/urn-3:HUL.InstRepos:11181140In this thesis I offer new results on how we can acquire, reward, and use accurate predictions of future events. Some of these results are entirely theoretical, improving our understanding of strictly proper scoring rules (Chapter 3), and expanding strict properness to include cost functions (Chapter 4). Others are more practical, like developing a practical cost function for the [0, 1] interval (Chapter 5), exploring how to design simple and informative prediction markets (Chapter 6), and using predictions to make decisions (Chapter 7).en-USComputer sciencecost functionsdecision marketsprediction marketsscoring relationsscoring rulesThesis or Dissertation2013-10-18