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Michael Wulfsohn's avatar

Yes, absolutely. I don't know the bubble literature well, but it may offer market design ideas. I was about to suggest that individuals not be allowed to resell or offset their bets, but apparently bubbles (i.e. departures from fundamental values) can still emerge in that setting - https://authors.library.cal....Another approach might be to improve speakers' incentives. For example, reward them only for changes to the price that turn out to be in the right direction, rather than just any change, so as not to reward volatility generation.

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RobinHanson's avatar

Imagine the group is given a description of some features of a person, and are trying to guess some other feature of that person.

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