Betting on the future via prediction markets, with Stephen Grugett of Manifold
Complex Systems with Patrick McKenzie (patio11)
Subsidizing Markets for Better Information Flow
Subsidizing a market increases its liquidity pool, allowing for larger bets and reducing price volatility for traders. This expanded liquidity fosters a more dynamic trading environment, ultimately translating into enhanced information generation within the market. By injecting funds to subsidize the market, a trader creates an incentive structure that encourages more participation, contributing to a richer and more responsive marketplace where the flow of information can lead to better economic outcomes.
00:00
Transcript
Play full episode
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
