Design and use of preference markets for evaluation of early stage technologies

Li Chen, Paulo B Goes, James Marsden, Zhongju Zhang

Research output: Contribution to journalArticle

18 Citations (Scopus)

Abstract

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.

Original languageEnglish (US)
Pages (from-to)45-70
Number of pages26
JournalJournal of Management Information Systems
Volume26
Issue number3
DOIs
StatePublished - Dec 1 2009

Fingerprint

Industry
Evaluation
Emerging technologies
Incentives
Experiments
Price convergence
Field experiment
Investing
Partnering
Market price

Keywords

  • Convergence
  • Incentives
  • Information market
  • Market performance
  • Preference aggregation
  • Preference ranking market
  • Technology evaluation

ASJC Scopus subject areas

  • Management Information Systems
  • Information Systems and Management
  • Management Science and Operations Research
  • Computer Science Applications

Cite this

Design and use of preference markets for evaluation of early stage technologies. / Chen, Li; Goes, Paulo B; Marsden, James; Zhang, Zhongju.

In: Journal of Management Information Systems, Vol. 26, No. 3, 01.12.2009, p. 45-70.

Research output: Contribution to journalArticle

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