Should Google subsidize the Lunar X Prize contract on InTrade?
Our good friend Bo Cowgill might have already re-created those prediction markets on Google’-s internal prediction exchange at a marginal cost of zero US dollar. No need for him to “-subsidize”- external prediction markets.
[As an appendix, I precise that I am in favor of opening the enterprise prediction markets to external traders, for some questions.]
Subsidizing prediction markets is an old Robin Hanson idea that carries quite a heavy price tag.
Conditional prediction markets is a great idea on the paper. Many people (e.g., Mike Linksvayer) like the idea. However, here is what the uncritical Robin Hanson fanboys blogging on Overcoming Whatever won’-t tell you:
- The first problem is that nobody trades those things.
- The second problem is that subsidizing those conditional prediction markets costs an arm and a leg.
- The third problem is that no major news media outlet has ever quoted the prediction market prices / probabilities generated by those conditional prediction markets.
Peter McCluskey could have rent a French mistress (or a French gigolo) for a full year with all the money he is spending on Robin Hanson’-s idea. Or vaccinated the whole African continent against Malaria. See Peter’-s comment, at the middle of the webpage, here.
Philanthropy and prediction markets are not mixing well —-yet.