Patent ID: 7693766

Claim:
A computerized method of price setting throughout a substantially continuous ongoing natural process starting with a reported precursor activity and culminating in a future naturally occurring event, for the purchase of positions predicting the eventual outcome of the future naturally occurring event at a particular geographic area comprising: providing a database containing a) historical precursor data collected from at least one historical precursor activity leading to an historical naturally occurring event at a particular geographic area of at least one of the coastal and the inland type, and b) a first purchase price to purchase a position predicting an eventual outcome of the future naturally occurring event at a particular geographic area of at least one of the coastal and the inland type, that is based at least in part upon a calculated probability predicting an outcome of the historical precursor activity as the future naturally occurring event; electronically making the first purchase price available to prospective purchasers at a communication port, prior to an announcement of the reported precursor activity; electronically receiving notification of the reported precursor activity from an external and verifiable notification source; responsive to receiving notification of the reported precursor activity, and throughout an ongoing duration of the reported precursor activity, making available to prospective purchasers via the communication port, a series of secondary purchase prices to purchase positions predicting the eventual outcome of the future naturally occurring event, with an initial secondary purchase price in the series based at least in pan on the first purchase price, and with subsequent secondary purchase prices in the series based on an ongoing market activity to purchase positions in the series, along with at least temporarily storing the initial secondary purchase price and the subsequent secondary purchase prices; monitoring, and making available to prospective purchasers via the communication port, throughout the duration of the reported precursor activity, the series of secondary purchase prices previously made available to prospective purchasers, along with ongoing electronically calculated probabilities of occurrence of the future natural event based on data collected from the reported precursor activity, to serve as a basis for future prices in the series of secondary purchase prices.