Re: MidEast Futures Markets Coming Soon

From: Brett Paatsch (paatschb@optusnet.com.au)
Date: Fri Jun 06 2003 - 10:49:14 MDT

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    Robin Hanson wrote:

    > Idea Futures "Markets in the Future of the MidEast" will be
    > open to the public for real money trading October 1, 2003:
    > www.PolicyAnalysisMarket.org I've been working for
    > several years to make this possible, and these markets will
    > showcase an exciting new market technology, a combinatorial
    > information market maker that can maintain millions of
    > independent prices even when there are only a handful of
    > traders.

    Interesting concept. I've sometimes thought it would be kinda
    fun during some discussions to be able to put one's money
    where one's mouth is. But the question of who holds the money
    is a bit tricky.

    Although its a zero sum game financially, ie, one only makes
    a dollar when someone else loses a dollar, I can see that
    potentially it would give incentives to more analytical thinking
    and reasoning which would be a good thing in itself. I note
    that the Economist (or its backers) and DARPA are
    associated.

    What about transaction fees? What would be the basic
    transaction unit?(presumably in US$).

    How do the contracts get defined? It would seem that
    the contracts must be based on binary and clearly verifiable
    propositions but there are a large number of such possible
    propositions how would these be arrived at?

    I note that the Economist (or its backers) and DARPA are
    associated.

    Has this sort of futures market been created before?

    - Brett Paatsch



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