Sounding the Alarm on the Ethics of Prediction Markets
The current explosion in prediction markets is targeted to create a new generation of losers, and young men are squarely in the crosshairs.
In a new report, Hersh Shefrin, a faculty scholar at the Markkula Center for Applied Ethics and professor of finance at the Leavey School of Business, points out that prediction markets and sports wagering have to ties to “the concept of fairness as a claim to entitlements.”
Shefrin notes the weakest of the seven entitlements is freedom from coercion.
"Next comes fairness as freedom from misrepresentation,” observes Shefrin. “According to this entitlement, prediction and betting markets are deemed fair if the information provided by these markets is completely truthful. Here buyers need not beware that the market is providing them with false information.”
Hersh Shefrin, faculty scholar with the Markkula Center for Applied Ethics and the Mario Belotti Chair in the Department of Finance at the Leavey School of Business quoted by .