SYSTEM AND METHOD FOR AUTOMATED MARKET MAKING

摘要

Method and systems for design and operation of a prediction market. A plurality of security bundles and a plurality of payoff vectors may be defined, such that each payoff vector in the plurality of payoff vectors is associated with at least one outcome in a plurality of outcomes. A prediction market engine may be provided for determining a price for each security bundle in the plurality of security bundles by using at least one processor to minimize a convex function over a convex set comprising a convex hull of the plurality of payoff vectors.