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Astral Codex Ten Podcast

Congrats To Polymarket, But I Still Think They Were Mispriced

Nov 28, 2024
Prediction markets had a remarkable performance during the recent election, demonstrating impressive accuracy and stability. The discussion centers on Polymarket's rise to fame, gaining significant public attention and potential customer loyalty. Insights into the reliability of prediction markets versus traditional methods surface, along with interesting theoretical scenarios. Despite the success, there's a critique on the mispricing of Trump shares, raising questions about market behavior and future implications for prediction markets.
17:25

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Quick takeaways

  • Polymarket demonstrated impressive prediction accuracy and stability during the election, significantly increasing its visibility and potential customer base.
  • Despite Polymarket's success, concerns linger about the mispricing of Trump shares and the influence of individual bets on market reliability.

Deep dives

The Success of Polymarket and Prediction Markets

Polymarket achieved significant success during the recent election, demonstrating an impressive capacity for accurate predictions. The platform maintained stability despite high user activity, effectively showcasing prediction markets to a broader audience. This increased visibility may result in a future with more customers and potentially less restrictive regulations under the incoming administration. However, despite Polymarket's achievements, there remains a critique regarding the perceived mispricing of Trump shares, indicating that a more nuanced evaluation of results is necessary.

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