Tag Archives: automated market makers

David Pennock wants you to believe that InTrade needs Robin Hanson’s automated market maker.

Posted on July 10, 2010 by Chris F. Masse

“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 ‘right’ level before trading even starts.”

Posted in All Best Posts Ever, Analysis (Meta), Exchange & Market Designs, Exchanges & Markets, Market Makers (Automated), Market Trading, Mechanism Designs, Research, Software | Tagged automated market maker, automated market makers, betting markets, event derivative markets, event derivatives, InTrade, Pennock, Prediction Market Software, prediction markets, Robin Hanson, software for prediction markets | 1 Comment

How the iPredict market maker works

Posted on January 6, 2010 by Chris F. Masse

How the iPredict market maker works

Posted in Exchanges & Markets, Market Makers (Automated), Software | Tagged automated market makers, iPredict, iPredict New Zealand, Prediction Market Software, prediction markets, Software, software for prediction markets | Leave a comment

CrowdCast = market mechanism = binary spreads with a market maker

Posted on July 20, 2009 by Chris F. Masse

Leslie Fine (CrowdCast Chief Scientist) to me: Actually, our mechanism is a market, it’s just not a stock market. We use an automated market maker to efficiently price every bet, adjust crowd beliefs, and price an interim sell. In essence, … Continue reading →

Posted in All Best Posts Ever, Collective Forecasting, Exchange & Market Designs, Exchanges & Markets, Market Makers (Automated), Mechanism Designs | Tagged automated market makers, betting markets, Collective Forecasting, Collective Intelligence, collective intelligence that predicts, CrowdCast, event derivative markets, Leslie Fine, market designs, market makers, market mechanisms, markets, Mechanism Designs, prediction markets | 2 Comments

The automated market maker of InTrade’s play-money prediction markets

Posted on November 4, 2008 by Chris F. Masse

Michael Schmahl: I think I have a guess as to how the play-money bot at Intrade works. Here are the order books for today at 2:48AM (2008-10-27) for NTH.DAKOTA.DEM on intrade.com and play.intrade.com: intrade.com play.intrade.com BID ASK BID ASK Qty … Continue reading →

Posted in Exchanges & Markets, Market Makers (Automated) | Tagged automated market makers, bots, InTrade, play-money prediction markets, prediction markets, trading bots, trading robots | Leave a comment

Yahoo! News finally links to InTrade —for legal reasons, not to InTrade .COM (their real-money prediction exchange), but to InTrade .NET (their play-money prediction exchange, which uses an AMM linked to InTrade .COM, without disclosing it to the public).

Posted on September 29, 2008 by Chris F. Masse

- – InTrade .COM – InTrade .NET -

Posted in Exchanges & Markets, Forecasting (Science & Practice), Market Prices & Probabilities, Regulations, Resources - References | Tagged 2008 US elections, AMM, automated market makers, Forecasting (Science & Practice), InTrade, InTrade .COM, InTrade .NET, poilitical dashboard, political forecasting, political polls, political predictions, Politics, polls, prediction markets, US elections, US elections presidential elections, US electoral college, US electoral college prediction, US electoral map prediction, US politics, Yahoo!, Yahoo! News, Yahoo! News Political Dashboard | Leave a comment

ProTrade vs. Sports Derivative Exchange

Posted on September 23, 2008 by Chris F. Masse

I asked Chris Hibbert whether they are “exchanges”. Chris Hibbert: It looks like it from a cursory glance. In both cases, you can buy and sell, and the prices appear to be set by market interactions rather than institutional fiat. … Continue reading →

Posted in Exchange & Market Designs, Exchange Genesis, Exchanges & Markets, Market Makers (Automated), Mechanism Designs | Tagged automated market makers, bet exchanges, betting exchanges, betting markets, book orders, event derivative exchanges, event derivative markets, event derivatives, play-money prediction exchanges, play-money prediction makets, predcition markets, prediction exchanges, prediction markets, ProTrade, Sports, Sports Derivative Exchange, US sports | Leave a comment

CDA, MSR, the automated market makers, and the human market makers

Posted on September 17, 2008 by Chris F. Masse

Posted in Exchange & Market Designs, Exchanges & Markets, Market Makers (Automated), Market Makers (Human), Mechanism Designs, Midas Oracle Archives | Tagged automated market makers, betting markets, event derivative markets, event derivatives, HubDub, market designs, Market Scoring Rules, Mechanism Designs, MSR, play-money prediction markets, prediction markets, Robin Hanson, zigzagging | Leave a comment

Nigel Eccles (the CEO of HubDub) and Robin Hanson (the inventor of MSR) have some explaining to make about the extreme zigzagging of the Barack Obama event derivative (in blue on this static compound chart). Look at the right end of the chart.

Posted on September 13, 2008 by Chris F. Masse

- UPDATE: Nigel Eccles: There was a bug in that chart which is now fixed. However the excess volatility is still there. The problem is that our early markets were created with a liquidity parameter which was too low. That … Continue reading →

Posted in All Best Posts Ever, Analysis (Data), Analysis (Meta), Exchange & Market Designs, Exchanges & Markets, Market Makers (Automated), Market Makers (Human), Market Prices & Probabilities, Mechanism Designs, Software | Tagged automated market makers, betting markets, event derivative markets, event derivatives, HubDub, market designs, Market Scoring Rules, Mechanism Designs, MSR, play-money prediction markets, prediction markets, Robin Hanson, zigzagging | 15 Comments

Prediction markets can be directly subsidized with a market maker, allowing all traders who provide info to improve the price to expect to profit. Also, the more fools the more informed traders should be attracted to profit from them, so the mix is endogenous.

Posted on April 23, 2008 by Chris F. Masse

Robin Hanson in a comment, over there. See also that question for Mike “Barbecue” Giberson. -

Posted in Analysis (Meta), Market Makers (Automated) | Tagged automated market makers, event derivative markets, event derivatives, Mike "Barbecue" Giberson, prediction markets, Robin Hanson, subsidized prediction markets | Leave a comment

Why does Chris Masse dislike so much the play-money prediction exchanges powered by InTrade?

Posted on January 2, 2008 by Chris F. Masse

A little disambiguation note on my two previous rants: I love InTrade’s real-money prediction exchange; I love the play-money prediction exchanges —using CDA (like NewsFutures) or MSR (like Inkling Markets); I don’t mind automated market makers in play-money prediction exchanges … Continue reading →

Posted in Analysis (Industry), Market Makers (Automated) | Tagged automated market makers, bots, Cav, Chris Masse, InTrade, prediction markets | Leave a comment

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