A lot of the money comes from the bad traders. If you have no bad traders, the prices are correct.
A better mechanism though is to “subsidize the market”, meaning the person who wants the information incentives the market to collect it. In particular, you can set up subsidy schemes where the average cost to the subsidizer is proportional to the number of bits of information they gained.
A lot of the money comes from the bad traders. If you have no bad traders, the prices are correct.
A better mechanism though is to “subsidize the market”, meaning the person who wants the information incentives the market to collect it. In particular, you can set up subsidy schemes where the average cost to the subsidizer is proportional to the number of bits of information they gained.