Design and Use of Preference Markets for Evaluation of Early Stage Technologies.

Author List: Chen, Li; Goes, Paulo B.; Marsden, James R.; Zhang, Zhongju (John);
Journal of Management Information Systems, 2009, Volume 26, Issue 3, Page 45-70.
In the work presented here, we develop and apply preference markets in evaluating early stage technology. Partnering with a Fortune 5 company, we developed and implemented two internal preference markets (field experiments). In both cases, nonmonetary (play money) incentives were utilized, but one market provided additional nonmonetary (play money) incentives. Working with the partner company, our investigation started with seven emerging technologies and expanded to a total of 17 emerging technologies. Our results suggest that even a simple form of additional nonmonetary play money incentive yielded greater price convergence, increased spread across final market prices, and greater consistency with a costly expert panel that was set up by the partner company. Based on the outcomes of our analyses, the partner company is investing in developing extended applications of preference markets as a potentially scalable approach for dealing with its ongoing and expanding strategic identification of promising emerging technologies.
Keywords: convergence; incentives; information market; market performance; preference aggregation; preference ranking market; technology evaluation
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#171 0.332 markets industry market ess middle integrated logistics increased demand components economics suggested emerging preference goods interesting form recent vertically chinese
#246 0.169 strategic benefits economic benefit potential systems technology long-term applications competitive company suggest additional companies industry operating costs difficult substantial total
#97 0.084 set approach algorithm optimal used develop results use simulation experiments algorithms demonstrate proposed optimization present analytical distribution selection number existing
#207 0.071 design artifacts alternative method artifact generation approaches alternatives tool science generate set promising requirements evaluation problem designed incentives components addressing
#157 0.069 evaluation effectiveness assessment evaluating paper objectives terms process assessing criteria evaluations methodology provides impact literature potential important evaluated identifying multiple
#241 0.057 information stage stages venture policies ewom paper crowdfunding second influence revelation funding cost important investigation ventures session studied electronic multiple