2008/10/18

Manipulation of prediction markets

Nice post on manipulation of prediction markets: ...manipulation can improve (!) prediction markets - the reason is that manipulation offers informed investors a free lunch.

Nice also to see our old friend Hanson.

1 comment:

  1. nigelecclesSun Oct 19, 03:09:00 PM 2008

    In theory yes but in this instance it moved the price out of line for 3 weeks. Even today there is a 4% difference between Intrade and Betfair.

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