Good point. But it is not just a cost problem. My conjecture in the above comment is that conditional markets are more prone to market failure because the structure of conditional questions decreases the pool of people who can participate.
I need more examples of conditional markets in action to figure out what the greatest causes of market failure are for conditional markets.
Good point. But it is not just a cost problem. My conjecture in the above comment is that conditional markets are more prone to market failure because the structure of conditional questions decreases the pool of people who can participate.
I need more examples of conditional markets in action to figure out what the greatest causes of market failure are for conditional markets.
Markets can work fine with only a few participants. But they do need sufficient incentives to participate.