Enabled by Internet-based technologies, users are increasingly participating and collaborating in idea generation in online innovation communities. Beyond increasing the quantity of ideas contributed by users, firms are looking to obtain innovation ideas of better quality. However, with the...

We employ a 2x3 factorial experiment to study two central factors in the design of prediction markets (PMs) for idea evaluation: the overall design of the PM, and the elasticity of market prices set by a market maker. The results show that 'multi-market designs' on which each contract is traded...