Here is my new paper co-authored with Dr. John Levendis, Associate Professor of Economics at Loyola University.
Abstract
Ludwig von Mises’s methodological position is unique because it combines apriorism with qualitative empirical approach. Nonetheless, Mises’s adherents and detractors continue to characterize his apriorism
as rejecting forecasting. This paper argues that a prediction market is
a traditional market for forward-looking information; it leverages
subjective knowledge and aggregates information via the market process
to effectively solve the Hayekian knowledge problem. We argue that
Austrian economists should embrace prediction markets as a powerful
method of forecasting rooted in human action.
