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Christian Kleineidam's avatar

Prediction markets incentives participants to avoid making 100 different bets but instead focus on a few bets where the participant believes they have a comparative advantage.

A person who has five bets has a lot more to gain by fixing a single outcome then a person who gave their credence for 100 outcomes.

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RobinHanson's avatar

It is easy to give everyone a positive stake so no one wants the project to fail. If you don't do this, even those evaluated via Brier scores can have incentives to make it fail.

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