I want to better understand how prediction markets on numeric questions work and how effective are they. Can someone share a good explanation and/or analysis of them? I read the Mataculus FAQ entry but it didn’t satisfy all my questions. Do numeric prediction markets have to use probability density functions like Metaculus, or can they use higher/lower like Manifold used to do, or are there other options as well? Would the way Metaculus does it work for real money markets?
I want to better understand how prediction markets on numeric questions work and how effective are they. Can someone share a good explanation and/or analysis of them? I read the Mataculus FAQ entry but it didn’t satisfy all my questions. Do numeric prediction markets have to use probability density functions like Metaculus, or can they use higher/lower like Manifold used to do, or are there other options as well? Would the way Metaculus does it work for real money markets?