The greatest value of mock stock exchanges may be that they enable analysis of hundreds of ideas, which can be whittled down rapidly to a few candidates. Traditional market research is not nearly as efficient because it’s virtually impossible to design a single useful survey that incorporates so many product concepts or attributes.
Who knows? As the technique is refined, it may save us from another Pearl Harbor. The movie, that is.
Ely Dahan, [email protected]
Ely Dahan is an assistant professor of management science at MIT’s Sloan School of Management. Collaborating with Professor Dahan on the ideas presented here were MIT Professors Andrew Lo and Tomaso Poggio, and MIT Ph.D. students Nicholas Chan and Adlar Kim.