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CONTACT: GEORGE MCCRORY
100 Old Public Library
Iowa City IA 52242
(319) 384-0012; fax (319) 384-0024
e-mail: george-mccrory@uiowa.edu

Release: May 15, 2000

Gore's lead drops in the Iowa Electronic Markets as McCain endorses Bush

IOWA CITY, Iowa -- The Iowa Electronic Markets (IEM) reacted strongly last week to John McCain's support for George W. Bush.

Bush shares in the Presidential Vote Share Market have risen over 3 cents since May 3, while Al Gore stock has dropped 1.8 cents. On May 5, Vice President Al Gore led Gov. Bush by almost 6 percent; today the lead is down to less than a point at 0.7 percent. Traders in the IEM believe that this race will be a tight one if McCain supporters shift to the Bush camp, according to George Neumann, UI professor of economics and an IEM director.

Although the endorsement did not take place until Tuesday, May 9, anticipation of the endorsement drove down Gore prices starting on May 5. In successive days the lead fell to 3 percent, then to 1.6 percent and finally to .7 percent.

For current prices, go to http://iemweb.biz.uiowa.edu/quotes/18.html. Quotes are updated every 15 minutes; the "last" price is the best indicator of market activity. The main IEM website is http://www.biz.uiowa.edu/iem/.

The Iowa Electronic Markets are real-money futures markets in which contract payoffs depend on economic and political events such as elections. These markets are operated by faculty at the University of Iowa Tippie College of Business as a research and teaching tool.

For more information, contact the IEM office at (319) 335-0881, iem@uiowa.edu, or Jeanine Pfuntner, IEM operations manager at (319) 335-0794, jeanine-pfuntner@uiowa.edu.

A chart is available showing recent market activity.