David Pennock wants you to believe that InTrade needs Robin Hansons automated market maker.

&#8220-Our market maker automatically adjusts its level of liquidity depending on trading volume. Prices start off very responsive and, as volume increases, liquidity grows, obviating the need to somehow guess the &#8216-right&#8217- level before trading even starts.&#8221-

One thought on “David Pennock wants you to believe that InTrade needs Robin Hansons automated market maker.

  1. David Pennock said:

    That’s sort of true. I suggest that if *prediction* is the goal, market makers are valuable. Market makers are also risky, so if profit if the goal there is a fundamental tradeoff: liquidity versus risk.

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