RePEcTrading, Microstructure & Execution
Limits to Arbitrage and Prediction Market Efficiency: the Case of PredictIt
Analysis of PredictIt shows that limiting investor stakes to $850 per contract undermines price accuracy, with bid prices persistently implying arbitrage profits even after fees.
Featured in No. 136 on 23 Oct 2026 · 4 days after release
- Released
- 19 Oct 2026
- First featured
- No. 136 · 23 Oct 2026
- Published in
- Not yet, as far as Semantic Scholar knows
- Fanfare
- 3 of 5
- Identifier
- RePEc:nbr:nberwo:35845
- Authors
- Eric Zitzewitz
Citations and venue from Semantic Scholar (ODC-BY), refreshed weekly. Summary: Quant Letter (CC BY 4.0).