Exago provides a predictive market platform where participants focus on sharing their knowledge and expertise. They create value-added ideas which are discussed and traded within the market community. The best ideas then move on to the implementation process.
When in the market, each idea has a belief value that reflects the subjective confidence level that participants have in the implementation of this idea. Belief, in financial terms, is the spot value – the price which reflects market expectations as to future price movements. Similarly to the financial markets, the aggregation of participants’ exchanges – the collection of all the beliefs and diverse knowledge – carry the belief value to the equilibrium point, which is the accumulation of all the information available about a specific asset.
Once an investor is trading, he is affecting automatically a change in belief in an idea. Exago’s platform has a feature which incorporates the price and quantity dimensions into one simple and easy-to-understand sliding button, which allows users to decide whether they want to increase or decrease belief in the idea and by how much. This allows participants to see the incremental change they are making to the value of the idea according to their own personal assessment of its quality.
Moreover, Exago has developed a market-maker mechanism: every user can buy and sell ideas whenever they want. The existence of a market-maker affords liquidity, allowing for a constant flow of investments within the market. Unlike in the financial world, the market-maker here has no profit-making intention.
The concept of spot value and the existence of a market-maker mechanism will rank ideas effectively according to their potential value, ready to be dealt with by managers with decision-making power.