RealityMarkets.com relies on a system call a Market Scoring Rule or MSR.  There are numerous MSR's being used by the various Prediction Markets around.  We have felt that many of these systems become overly complicated and as such we rely on a basic system developed in house that solves our problems of:

• Allowing short trades
• Allowing long trades
• Providing sufficient liquidity to traders
• Providing accurate predictions

While there exists numerous other systems for price discovery, we believe the system that we are using is simple, effective and accurate.