Prediction markets and corporations: benefits and barriers

There is growing discussion about prediction markets, particularly when it comes to their uses within corporations. As some of us know, the idea of prediction markets "recently" became more popular with the success of James Surowiecki's book the wisdom of crowds, a national bestseller about the virtues of collective intelligence, including prediction markets. Today, while some corporations widely use prediction markets, others are still hesitant about the whole idea.
Here is a short list of benefits and barriers about prediction markets:
Benefit 1# : On many occasions, lower-level employees who interact directly with the customer have more information about certain issues, but decision makers rarely ask their opinion. In situations like this, leaders "deprive themselves of information that could enrich their analysis and reduce the risk of ivory tower decision making". On the other hand, prediction markets allow employees to share unwelcome information about a project’s launch date or a new product’s performance anonymously, without fear about their careers. What’s more, competition among colleagues and the prospect of winning a prize create incentives for seeking information and making the best-informed bets.
Barrier: Organizations may not feel comfortable sharing the results of prediction markets with the broader group. It can be very embarrassing for management to know that everyone feels that a certain strategy is wrong. This is clearly a culrure issues but it can be a barrier against using prediction markets overall.
Benefit #2: On most occasions, information and knowledge is scattered and its difficult for management to retrieve it. Prediction markets can rapidly aggregate information dispersed across an organization.
Barrier: Deciding on the mix of participants can be a challenge. It means that organizations need to cover different constituencies, be comfortable with sharing results with them but also maintain balance between various departments, including those dedicated to forecasting (who may see the prediction markets as a threat)
Benefit #3: Prediction markets are easy to implement and their cost is low, particularly when compared to traditional types of research. As a result, management can test many different ideas and get predictions at a very low cost.
Barrier: Organizations need to carefully think about the variables that they are trying to predict and how they use the results in the context of other information sources (i.e. traditional market research). More importantly, they also need to think about some possible legal obstacles: what happens when an employee sees a prediction market price on his dashboard and realizes, that a certain product is going to be a success? Is he an insider if he trades the company stock on the real stock exchange? Remember, this is information that only a few top people had before...
So overall, prediction markets offer a number of benefits and companies can clearly benefit from using them. Their more mainstream adoption is subject to suppliers educating corporations about their benefits, but also, companies overcoming some organizational and other obstacles as described above.