Foul Play in Information Markets by Robin Hanson

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Foul Play in Information Markets by Robin Hanson

Description

Many observers have expressed concerns that information markets might induce various forms of foul play. For example, during the recent furor over the Policy Analysis Market (PAM) of the Defense Advance Research Projects Agency (DARPA), otherwise known as terrorism futures, critics complained that PAM might have allowed bets on the details of individual terrorist attacks....Others have expressed concerns that such markets might induce more people to lie, that markets inside organizations might misdirect resources, perhaps maliciously, and that threats of retribution might limit their effectiveness. In this chapter, I review what we know about these possible forms of foul play, and I suggest some new
approaches to dealing with them

Link: http://mason.gmu.edu/~rhanson/foulplay.pdf