The idea behind Google Prediction Markets (GMP) was based off of an application where winners of elections could be predicted within a 2% margin of error. If this is true, I suggest that we utilize this process to develop odds for sporting event bets. We can then open up our Google Casino and start raking in the money. (Lets assume that there are no laws about gambling).
I'm not exactly familiar with how odds are created, but the idea is that 50% of the people will bet on one side and the other 50% will bet on the other side. In this way the casino makes money because they make a certain amount (vig) for the service of allowing bets. Well using GMP, we now know which teams the people are going to bet on, and we can create an algorithm that creates point spreads based on the difference between percentages. Our results could be more accurate than the crazy methods that bookmakers sometimes use to generate action.
So perhaps asking users who they would bet on, would result in a decent way to create a good prediction and get right at that 50% mark.
In reality, developing odds may not this simple. (watch Two For The Money with Matthew McConaughey). Crowdsourcing odds may not exactly result in the best results due to people's lack of gambling info and lack of incentive to tell the truth. But perhaps Google's smart people can read this and come up with some more seedy software instead of software that helps people.
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