'This is the most exciting story of financial innovation ever told by the innovators themselves. Baron and Lange designed an exciting new method for the simultaneous auctioning of a family of derivative securities whose payoffs depend on the future outcome of an economic variable of interest to hedgers and speculators. Their insight was that a parimutuel format would conserve liquidity ... Read moreacross the different derivatives, rather than split it among them. Then they developed the market as a business, and wrote the book! This is financial engineering at its best, both colorful and rigorous. I highly recommend it to any student of derivative securities or financial market design. It will be a classic for years to come.' - Darrell Duffie, the James I. Miller Professor of Finance at the Graduate School of Business, Stanford University. 'The parimutuel concept is an exciting one that the world is only just beginning to appreciate. This book is the definitive treatise on this technology, as it is emerging today, and as it will be developed in the future. It is a book to be studied over future years as markets proliferate and become more and more important in our lives.' - Extract from the forward by Professor Robert Shiller. Show Less