I actually think that could work.
You could use that for freelance work, loans or hostel booking.
And psztorc, here reputation is not link to a person but to an action done by a person. This is more like evaluating a risk that's why I think prediction market can work to determine this risk. With this information added you can take your decision of hiring this person for a particular job, lending money to this person or booking a room in this hostel. The difficulty would be in writting the contract that determine if it is a success or a fail for some cases.
You could use that for freelance work, loans or hostel booking.
And psztorc, here reputation is not link to a person but to an action done by a person. This is more like evaluating a risk that's why I think prediction market can work to determine this risk. With this information added you can take your decision of hiring this person for a particular job, lending money to this person or booking a room in this hostel. The difficulty would be in writting the contract that determine if it is a success or a fail for some cases.