I was thinking about a scenario where the scan has not yet happened, but the scan will happen before prices finalize. In that scenario at a minimum, you are not incentivized to bid according to your true beliefs of what will happen. Maybe that incentive disappears before the market finalizes in this particular case, but it’s still pretty disturbing—to me it suggests that the basic idea of having the market make the choices is a dangerous one. Even if the incentives problem were to go away before finalization in general (which is unclear to me) it still means that earlier market prices won’t work properly for sharing information.
I was thinking about a scenario where the scan has not yet happened, but the scan will happen before prices finalize. In that scenario at a minimum, you are not incentivized to bid according to your true beliefs of what will happen. Maybe that incentive disappears before the market finalizes in this particular case, but it’s still pretty disturbing—to me it suggests that the basic idea of having the market make the choices is a dangerous one. Even if the incentives problem were to go away before finalization in general (which is unclear to me) it still means that earlier market prices won’t work properly for sharing information.