saturn comments on Open Thread, September 30 - October 6, 2013 - Less Wrong

4 Post author: Coscott 30 September 2013 05:18AM

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Comment author: cousin_it 03 October 2013 06:01:44PM *  1 point [-]

Good link, thanks. So Robin knows that zero-sum markets will be "no-trade" in the theoretical limit. Can you explain a little about the mechanism of subsidizing a prediction market? Just give stuff to participants? But then the game stays constant-sum...

Comment author: saturn 03 October 2013 08:35:41PM 0 points [-]

I always assumed it was by selling prediction securities for less than they will ultimately pay out.