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The cost of capital in a prediction market
Institution:1. Lancaster University, UK;2. University of Bath, UK;3. University of Bradford, UK;1. Bank of England and CEPR, United Kingdom;2. Goldman Sachs International, United Kingdom;3. Bank of England and CfM, United Kingdom;4. Bank of England, United Kingdom;1. University of Castilla-La Mancha, Department of Business Administration, Ciudad Real 13071, Spain;2. Universitat Politècnica de València, Department of Business Organization, Camino de Vera s/n, Valencia 46022, Spain;3. Lancaster University Management School, Department of Management Science, Lancaster, LA1 4Y X, UK;1. Institute for Statistics and Econometrics, Christian-Albrechts-University of Kiel, Olshausenstr. 40-60, D-24118 Kiel, Germany;2. Bank of England, Threadneedle Street EC2R 8AH, London, England, United Kingdom;3. DAFM, United Kingdom;1. Università di Roma “Tor Vergata”, Italy;2. ISTAT, Italy
Abstract:
Keywords:Prediction markets  Cost of capital  Favorite-longshot bias
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