ABSTRACT
Online prediction markets, which use a financial market mechanism as an information aggregation and processing engine, are gaining a foothold within the corporate world, driving new management and business processes. A report in 2011 by McKinsey, a business analysis firm, states that 7% of 2,000 executives reported the use of prediction markets as part of their management tool kit (McKinsey, 2011). The integration of prediction markets into MBA curricula opens up new pedagogical opportunities and serves a dual purpose. It exposes students to innovative business methods and tools and at the same time facilitates the creation of an online experiential learning environment. The development of prediction markets that are appropriate in an educational context is challenging. The need to align the activity with pedagogical objectives requires that the educator possess a good understanding of the tool and its underlying concepts. The effective integration of prediction markers into the learning process calls for an iterative developmental approach. Several active learning modules and design considerations derived from their development process are presented here.
