This chapter describes the lottery procedure for inducing preferences over units of experimental exchange and show how it is supported by several experiments on behavior in simple contexts. This chapter reviews various evidence from a set of paired choice and pricing tasks designed to determine...

Each market is related to a specific future event, for instance a presidential election, and contains a set of contracts with liquidation values pegged to the outcome of the future event. Contracts enter into circulation by the voluntary purchase from the IEM trading system of bundles of...