TY - JOUR
T1 - Design and use of preference markets for evaluation of early stage technologies
AU - Chen, Li
AU - Goes, Paulo
AU - Marsden, James
AU - Zhang, Zhongju
N1 - Funding Information:
Acknowledgments: The authors gratefully acknowledge the support provided by CITI (Connecticut Information Technology Institute), Gladstein Endowed Research Lab, Gladstein Endowed Professor Fund, and Treibick Family Endowed Chair Fund at the university of Connecticut. They are indebted to the editor and two anonymous referees for their many helpful comments and suggestions.
PY - 2009/12/1
Y1 - 2009/12/1
N2 - In the work presented here, we develop and apply preference markets in evaluating early stage technology. Partnering with a Fortune 5 company, we developed and implemented two internal preference markets (field experiments). In both cases, nonmonetary (play money) incentives were utilized, but one market provided additional nonmonetary (play money) incentives. Working with the partner company, our investigation started with seven emerging technologies and expanded to a total of 17 emerging technologies. Our results suggest that even a simple form of additional nonmonetary play money incentive yielded greater price convergence, increased spread across final market prices, and greater consistency with a costly expert panel that was set up by the partner company. Based on the outcomes of our analyses, the partner company is investing in developing extended applications of preference markets as a potentially scalable approach for dealing with its ongoing and expanding strategic identification of promising emerging technologies.
AB - In the work presented here, we develop and apply preference markets in evaluating early stage technology. Partnering with a Fortune 5 company, we developed and implemented two internal preference markets (field experiments). In both cases, nonmonetary (play money) incentives were utilized, but one market provided additional nonmonetary (play money) incentives. Working with the partner company, our investigation started with seven emerging technologies and expanded to a total of 17 emerging technologies. Our results suggest that even a simple form of additional nonmonetary play money incentive yielded greater price convergence, increased spread across final market prices, and greater consistency with a costly expert panel that was set up by the partner company. Based on the outcomes of our analyses, the partner company is investing in developing extended applications of preference markets as a potentially scalable approach for dealing with its ongoing and expanding strategic identification of promising emerging technologies.
KW - Convergence
KW - Incentives
KW - Information market
KW - Market performance
KW - Preference aggregation
KW - Preference ranking market
KW - Technology evaluation
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U2 - 10.2753/MIS0742-1222260302
DO - 10.2753/MIS0742-1222260302
M3 - Article
AN - SCOPUS:77749333414
SN - 0742-1222
VL - 26
SP - 45
EP - 70
JO - Journal of Management Information Systems
JF - Journal of Management Information Systems
IS - 3
ER -