How Markets Use Information To Set Prices

My new article this week titled "How Markets Use Information To Set Prices" looks at how different markets use information and beliefs to set prices, and how we can conversely gain information from looking at price changes. By using the real-life example of sports fans gambling on the 2003 Major League Baseball All-Star Game we can see how information plays a role in the price of a contingent contract and how we can deduce from that price the probability that the American League will win the game.