Multiple Choice
After the September 11th attacks, one division of the Pentagon began to set up a Policy Analysis Market (PAM) , a prediction market for political events in the Middle East. United States senators cancelled the program after discovering that it would allow futures contracts for assassinations and terrorist attacks. Had the PAM survived, how might it have helped the United States government?
A) by lowering the signal-to-noise ratio in the market
B) by tipping off terrorists that they were about to be captured
C) by showing the world that we did not know very much about events in foreign countries
D) by aggregating dispersed information about political events into a single, readable signal
Correct Answer:

Verified
Correct Answer:
Verified
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