Austrian Influence on Prediction Markets

I just like this article because it quotes Hayek. From Cnet:

In a 1945 paper, the great Austrian economist F.A. Hayek described how prices set by a free market are really "a mechanism for communicating information" about the probability of future events.

...Hayek's insight showed that the results can be surprisingly accurate, as long as enough people are allowed to wager real money on the outcome.

Now, technology firms are using a modern twist on this idea, called prediction markets, as a way to save money, harness the distributed knowledge of their rank-and-file employees...