Clearer Thinking with Spencer Greenberg Systems of governance built on prediction markets (with Robin Hanson)
11 snips
Sep 7, 2023 
In this enlightening discussion, Robin Hanson, associate professor of economics at George Mason University and prediction market pioneer, delves into the innovative governance system known as futarchy. He explains how prediction markets could revolutionize decision-making, tackle legislative processes, and even evaluate political proposals. The conversation shifts to the societal reluctance towards blending finance with governance and examines the meaning of 'sacred' in politics. Packed with insights, this dialogue challenges conventional views on governance and social dynamics.
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Social vs. Technical Innovation
- Social innovations are often rediscovered because they aren't readily adopted.
- This lack of adoption contrasts with technical innovations, which are typically implemented and then removed from the pool of new ideas.
CEO Firing Market
- Robin Hanson proposes a decision market for CEO firing, using stock price as a proxy for good decisions.
- Two new stock markets are created: one that pays out if the CEO stays and one if the CEO leaves, letting market speculators determine the best outcome.
Insider Trading in Decision Markets
- Insider trading in decision markets can be beneficial as it increases price accuracy.
- This contrasts with typical insider trading, which discourages broader market participation.
