Algorithms can be participants in prediction markets.
Nope. To participate in markets you need to commit capital. Which you need to own to start with.
Anyone can, of course, put an algorithm in charge of his money, but you do need to have money.
The social cost of putting up content can hopefully be quantified using market liquidity and prices, e.g. as the subsidy needed to make the market clear “well enough.”
What does that mean? A liquid market always clears, you may not like the price or the volume, but that is a different issue.
The deposit / initial bet provided by a contributor
If you require a deposit from a contributor, you will find that you have very very few contributions.
Nope. To participate in markets you need to commit capital. Which you need to own to start with.
Anyone can, of course, put an algorithm in charge of his money, but you do need to have money.
What does that mean? A liquid market always clears, you may not like the price or the volume, but that is a different issue.
If you require a deposit from a contributor, you will find that you have very very few contributions.