15 - Comprehension Questions for Prediction Markets
Please answer these questions concisely (ideally 1 sentence each).
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Name 3 advantages that prediction markets have when compared to polls or other forecasting methods.
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What could be a potential problem when using a prediction market inside a company to make a decision regarding the launch of a new product?
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What are the nice properties of an automated market maker using an LMSR?
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Why is computational complexity a concern for the design of prediction markets?
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