Exago patents method for fairer operations in prediction markets

Exago was awarded, on 21 October, a patent by the US Patent Office for a model that reduces purely speculative trading in prediction markets, such as the ones used in idea market platforms. This model encourages relevant participation and promotes the best process output in idea management initiatives.

Processing high volumes of information, prediction markets are the most efficient way to select the best contributions out of the vast array submitted by participants in idea management platforms. Exago’s system and model lessens the effects of any deliberate attempt to interfere with the free and fair operation of these markets.

At its core, Exago’s method increases the risk of purely speculative or manipulative trading strategies, diminishing their expected payoffs. Thus, participants have fewer incentives to engage in such undesirable strategies, greatly reducing their impact and frequency of use.

Exago’s ‘System and method for adjusting asset value and availability in data records for mitigating speculative trading in a prediction market’ has now been officially recognised as a way to address this problem (patent number 8,868,459 B2).

How does it work?
The transaction control software introduces several methods to mitigate speculative manipulation, working together or independently. Among others, they enclose minimum holding times for operations, profit/loss adjustments selective delays and dynamic user risk profiling that adapts the mitigation mechanism to user behaviour patterns.

Exago´s software platform includes a prediction market mechanism to evaluate large numbers of ideas and insights. Successfully implemented by companies worldwide, the platform harnesses each organisation’s collective intelligence, to find the best solutions and tackle specific business challenges.

Find out more about this patented method here.

Exago Spring 2014 release is out

A great step up in usability and design; Exago’s new release revolutionizes how users experience the entire process of participating and creating value. Our design looks cleaner, with smoother transitions between different areas. It promotes more creativity and deeper analysis, whenever participants generate content.

An entirely new approach to content-centric discovery makes finding specific content that much easier. In this highly intuitive navigation system, using search and tag filtering, all elements pop up quickly, while trending tags allow users to explore freely along new pathways.

We have added a unified section for creating content—visible at all times in a tab and dedicated to ideas and insights. Our module for idea management integrates all insight creation, increasing the available information and promoting knowledge sharing amongst participants. Managers can also associate insights with multiple challenges, inspiring participants to generate increasingly valuable ideas.

In navigation and usability, dozens of adjustments — including different levels of tabs — allow easy access to the most relevant platform areas at any time:

    • Challenges stand out as the central concept of the platform, linked to every other type of content and all process information.
    • Much more detailed and based on O-Data reports, reporting now offers system administrators all relevant information needed for analysis.
    • Last, but not least, participants can directly translate the content they generate, using integrated Google translation tools.

In essence, Exago’s new release makes life easier for participants. It incentivizes users to participate with more valuable and informed content. Our more user-centric approach enables administrators to analyze activity more deeply, reconfigure at will, and update communication plans — maximizing performance and bottom-line results.

Not merely a touch-up job, the Spring 2014 release offers a complete makeover that gives our users a state-of-the-art experience in innovation management.

Idea Market: how it works

Exago provides a predictive market platform where participants focus on sharing their knowledge and expertise. They create value-added ideas which are discussed and traded within the market community. The best ideas then move on to the implementation process.

When in the market, each idea has a belief value that reflects the subjective confidence level that participants have in the implementation of this idea. Belief, in financial terms, is the spot value – the price which reflects market expectations as to future price movements. Similarly to the financial markets, the aggregation of participants’ exchanges – the collection of all the beliefs and diverse knowledge – carry the belief value to the equilibrium point, which is the accumulation of all the information available about a specific asset.

Once an investor is trading, he is affecting automatically a change in belief in an idea. Exago’s platform has a feature which incorporates the price and quantity dimensions into one simple and easy-to-understand sliding button, which allows users to decide whether they want to increase or decrease belief in the idea and by how much. This allows participants to see the incremental change they are making to the value of the idea according to their own personal assessment of its quality.

Moreover, Exago has developed a market-maker mechanism: every user can buy and sell ideas whenever they want. The existence of a market-maker affords liquidity, allowing for a constant flow of investments within the market. Unlike in the financial world, the market-maker here has no profit-making intention.
The concept of spot value and the existence of a market-maker mechanism will rank ideas effectively according to their potential value, ready to be dealt with by managers with decision-making power.