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Thursday, July 10, 2008

Google using market prediction for management decisions

Can they really be so efficient ? Or is this one team who just exploring these methods. In any case I think its a sign of the efficiency within.

[Bloomberg] --- The day after a company's stock rises, employees are more optimistic about the projects they're working on. You can bet on it. And at Google Inc., they do. That's what researchers found in the behavior of employees on an internal trading system the company designed. Using a faux currency called the Gooble, 2,000 workers have wagered on about 370 subjects, from the success of the company's Gmail service to the quality of a new ``Star Wars'' movie. Academic studies show these so-called prediction markets work as financial modeling tools. Google managers use the results as a reference in strategy meetings and crunch the data to see how employees behave. After finding traders got bullish about meeting goals following a climb in the stock, Google started examining how productivity and optimism are connected.

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