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I wonder if the creators were aware of Robin Hanson's market maker mechanism, in which an automated market maker always accepts a trade. It limits its potential
by dminor 8y ago
I wonder if the creators were aware of Robin Hanson's market maker mechanism, in which an automated market maker always accepts a trade. It limits its potential losses by offering increasingly worse terms as the market deviates from even chance of the outcome.
It also allows different predictions to be linked, so that you can bet on the outcomes of two events, or on the outcome of one event given a particular outcome of another event.
- otoburb 8y agoThey knew of Robin Hanson's work around futarchy[1], and interviewed him[2]. Augur initially planned to implement an automated market making scoring mechanism, but changed the dynamics[3] during alpha testing. [1] https://en.wikipedia.org/wiki/Futarchy https://en.wikipedia.org/wiki/Futarchy [2] http://augur.strikingly.com/blog/augur-advisor-chat-with-dr-robin-hanson-case-study-overviews http://augur.strikingly.com/blog/augur-advisor-chat-with-dr-... [3] https://augur.stackexchange.com/questions/104/why-did-augur-decide-to-move-away-from-an-automated-market-maker https://augur.stackexchange.com/questions/104/why-did-augur-...