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jacob
@jacob
Im curious to see where manipulation of prediction markets nets out given their increasing prominence as a source of truth. For elections—where the odds could have a non zero impact on votes similar to polls—you could see a significant % of campaign advertising spend find its way into just betting on their candidate winning: becoming a literal war of attrition. The above line of thinking only makes sense if the perception of current odds has a meaningful impact on voter decision making, but that doesn’t seem that far from reality.
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Ayush
@ayushm.eth
But why wouldn’t the markets bring it back to their “correct” (based on public information/analyses) levels? Not sure what volume these markets are doing now so could be a factor of a nation state on one side
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jacob
@jacob
Yeah there should be a constant pressure to arb any mispricings so it doesn’t come for free and would take a lot of capital. But while these markets are still relatively nascent it’s at least a little possible.
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