My earlier post on prediction markets stirred a bit of interest and sent me off looking a bit more deeply. One commentator noted a network of universities, nonprofits and foundations in Southern California developing prediction market. Robert Wood Johnson Foundation funded such a tool focused on avian flu - the Iowa Health Prediction Market. Another post mentions "one very big West Coast foundation" and the Rand Corp using prediction markets.
Here's some info on a prediction market (also known as collective intelligence) conference held earlier this year.