Prediction markets in companies

From BusinessWeek

But can groups working in a system like that really make better decisions than a few well-informed individuals? It's a radical notion for many in the corporate world, where CEOs and a handful of other executives are paid top dollar for presumed expertise.

And yet the idea is commonly accepted in the stock market. "Firms are comfortable with markets; it's a bit puzzling why they don't use them more often internally," says Todd Henderson, a professor of law at the University of Chicago.

Experts say prediction markets can work well for companies because they give a voice to employees who might not otherwise speak up. The markets are particularly useful in areas such as consumer goods or technology, where change is rapid and companies need to adapt quickly or get left behind.