From the New World cover image

Robin Hanson: How Global Elites Manufactured Stagnation and How We Escape

From the New World

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Adding Manipulators Makes the Prices More Accurate, Right?

In financial markets, typically, the more sheep you have, the more wolves you attract. Sheep make prices more informed, i e, add more noise and the price gets more accurate. If you look at a big stock price like google, compared to a small stock price like cosco, then a the big stock price will be more accurate because there's more people trading it for other reasons. And therefore the price a more noise, more informed traders come in.

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