Computer science professor Peter Stone has been named a 2011 Yahoo! Faculty Research and Engagement Program (FREP) recipient and has been granted a $10,000 gift for his proposal titled “Testing a Liquidity Sensitive Market Maker for a Prediction Market on the UT Austin CS Building Opening.”
Professor Stone’s research will aim to build upon a research project performed by a CMU student from 2008 to 2009 that ran a prediction market to forecast when CMU’s two new computer science buildings would be open. Peter’s research will aim to replicate the experiment on the new Bill & Melinda Gates Computer Science Complex currently under construction. The results of this research will test whether a new automated market maker algorithm jointly developed by Yahoo! and CMU can improve the performance of the market. The prediction market is planned to be highlighted on the building progress page of the UTCS website.
The goal of Professor Stone’s research is to implement, deploy, and gather widespread participation in a prediction market on the opening date of the new UTCS building. Professor Stone and his team intend to test how the new flexible-liquidity market maker performs in comparison to the market maker that was used at CMU.
FREP is designed to produce the highest quality scientific collaborations and outcomes by engaging with faculty members working in areas of mutual interest. Through this program, academics across the globe collaborate with Yahoo! research scientists via visits to Yahoo!, access to our data and funds for their research.