This is significantly reduced with marketsâhedge fund managers in general are perfectly happy to own Walmartâs stockâand even more so if bets are anonymous. Iâve never encountered any credible argument that (wealthy) hedge fund guys have trouble pricing Discount Retailers or Tobacco stocks just because their customers are from a different social class.
Is this a good analogy for prediction markets, though? The stock prices donât feed directly into policy decisions about taxes and regulations, but prediction market prices would under futarchy (unless you limit their scope to exclude specific policies), from my understanding. Betters have a better path to influence policy in their favour through these prediction markets than through stock markets. I donât know how large these effects would be, but this is discussed in the section â(5) Buying policies: manipulation through extreme wealthâ.
Of course, in many countries they can directly lobby governments or make large campaign contributions, but those could be strictly limited separately.
Is this a good analogy for prediction markets, though? The stock prices donât feed directly into policy decisions about taxes and regulations, but prediction market prices would under futarchy (unless you limit their scope to exclude specific policies), from my understanding. Betters have a better path to influence policy in their favour through these prediction markets than through stock markets. I donât know how large these effects would be, but this is discussed in the section â(5) Buying policies: manipulation through extreme wealthâ.
Of course, in many countries they can directly lobby governments or make large campaign contributions, but those could be strictly limited separately.