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points by kibwen 3 days ago | 0 comments
Predictions markets are terrible mechanisms for this, because they require imposing an arbitrary time limit at which point the prediction will pay out. IOW, even if you religiously believed P=NP, but you think it would take at least two years to prove it, you would vote against the prediction if the deadline were one year.
[–] internetter 3 days ago
Why must prediction markets have a predefined end date?
[–] jibalt 3 days ago
Without it, capital would be trapped indefinitely.
[–] howunfortunate 3 days ago
This is not necessarily true, you could have contracts rather than money down
[–] throw-qqqqq 2 days ago
Sure, but in most (all?) financial settings, this would still count as exposure.

It doesn’t matter if I bet $N on something using cash or margin, my exposure is still $N.

Since you can’t have unlimited exposure, this would still lock up capital, until the bet can be resolved.

[–] FeepingCreature 2 days ago
Well, so? Then the prediction market would also price expected resolution time.
[–] Tadpole9181 3 days ago
How would it work otherwise...?
[–] internetter 3 days ago
Anybody can exit their contract by selling their contract to an interested party