Gossip-based Prediction Market Simulation

Abstract

This report describes a custom built rich client Java application that simulates the spread of information spreading through a user-community of a dynamic pari-mutuel market (DPM). It includes the necessary theoretical concepts for understanding DPMs and gossip algorithms. NOTE: You MUST have the latest Java Runtime Environment installed.

Figures

Tracking the prices of two assets for two different price functions

A screen shot of the Java application