3 ms·
In theory you're right - but this isn't how it works in practice. The people who earn the most money are the best traders, not necessarily the people with the "
by adam 8y ago
In theory you're right - but this isn't how it works in practice. The people who earn the most money are the best traders, not necessarily the people with the "most information and best models." The overall forecasts tend to be accurate, but you cannot look to individual participants, see who has the most money, and assume they know the most about the subject at hand.
- merinowool 8y agoHow can one make money with that knowledge put to work?
- skolsuper 8y agoBoth right: on an individual level the people with the most money might or might not be the smartest, but in aggregate the money moves towards the smarter bettors, weighting their votes higher in future rounds, improving the aggregate intelligence of the market.