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pcm comments on Crash problems for total futarchy - Less Wrong
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I envision markets generating rules, but not making all decisions. I don't see any indication that futarchy would take much discretion away from the people who currently make military decisions.
If we can maintain that kind of balance between the deciders and the betting markets, things should be fine. The problem would be if the betting markets become dominant in decision making (and choosing how to respond to a seemingly accidental firing is a political, not a military decision).