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.

No Gravatar

Robin Hanson in a comment, over there.

See also that question for Mike &#8220-Barbecue&#8221- Giberson.

Leave a Reply

Your email address will not be published. Required fields are marked *