Robin Hanson, is what I would term a market fundamentalist – somebody who believes that markets are the primary mechanism for achieving the public good. Recent events have demonstrated that this creed is morally bankrupt. We are, in the words of Michael Sandel, “at the end of an era of market triumphalismâ€.
I deny the accusation, though I’m not sure why I should have to. Having a high opinion of the eventual info power of decision markets [*] is very different from saying “markets are the primary mechanism for achieving the public good.†Shouldn’t you have to first provide support for your accusation, rather than me somehow having to first prove bald accusations wrong?
[*] That’s at the core of the issue. Somebody who has a “high opinion” of something that has not given stellar results since 1988 is obviously exaggerating. I personally have a somewhat good opinion of prediction markets and conditional prediction markets, but not a “high opinion” —sense my nuance. Niall O’Connor has been too strong in his “accusation” ( 
), but he is a bit in the right. [UPDATE: Niall O'Connor has an honest reply to Robin Hanson.]
“robin hanson” “market fundamentalist”
http://www.google.com/
This post pops up as #1.
2 interesting comments on “market fundamentalism” —the second is from Tyler Cowen:
http://econlog.econlib.org/archives/2008/10/why_do_people_k.html#44070
Technically no, but his manipulation models and experiments that he refers people to have unrealistic assumptions. Tyler Cowen seemed to say that Robin takes models too seriously on Bloggingheads.
Even if it’s true that manipulation will be a losing proposition, on average, in the long run, we now have Keynes’ ghost reminding us that …. Arguing for financial innovation while downplaying the viability of pathologies was a negative skew proposition. At this point it may have an outright negative expectancy. I guess Robin feels that time is on his side though.. and that there is some chance Keynes was wrong on the long run point!
Jason, I see that you still obsess with manipulations.
It’s an important question on how much markets should be trusted.