Integrating Market Makers, Limit Orders, and Continuous Trade in Prediction Markets

We provide the first concrete algorithm for combining market makers and limit orders in a prediction market with continuous trade. Our mechanism is general enough to handle both bundle orders and arbitrary securities defined over combinatorial outcome ...

Prediction markets are a promising approach for predicting uncertain future events and developments. These markets will work well if they are efficient and in efficient markets, one does not expect arbitrage opportunities to be persistent. This paper ...

Current automated market makers over binary events suffer from two problems that make them impractical. First, they are unable to adapt to liquidity, so trades cause prices to move the same amount in both thick and thin markets. Second, under normal ...