Simon & Schuster is tapping into the wisdom of the crowd in an attempt to identify book ideas that could turn into blockbusters.

The company has partnered with newly launched Media Predict, an online "prediction market" modeled after similar systems that successfully forecast which candidates will win political elections and which movies will generate the highest box office receipts.

In essence, Media Predict is an online game in which traders use a limited number of virtual dollars to buy shares in book proposals that they believe will be successful. The proposals are submitted by literary agencies as well as individuals.

And who are these traders? Anyone with an interest in media who cares to register on the site.

Let’s all head over there, sign up as traders, and take this intriguing
tool for a test drive. It looks like a useful way to get first-hand
experience in the power of user participation–for anyone who publishes
anything on the Web.

Here’s how Simon & Schuster plans to use Media Predict. In October, it will choose one proposal from among those that are most highly valued by the "market." Touchstone, an S&S imprint, will then publish the book, assuming, as the company puts it, "the completed manuscript satisfies Touchstone’s publishing criteria."

In addition to books, Media Predict traders currently can bid on musical groups (will they get a record deal?) and television pilots (will the series get produced?). Eventually the site may expand into many more areas of media.

You’ll find a fuller explanation, including helpful videos, at How Media Predict Works.