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I like the idea in principle but betting, real money or not, relies on agreed upon, objective results/outcomes. There in lies the problem; who's going to be the arbiter of truth?

However, it seems possible to get further along than we are now by creating betting pools/markets where the participants do agree on a set of sources for information.

Actually, I've thought along these lines before rather indirectly by theorizing that the WSJ was probably the most non-partisan source of "news" because most of it's clientele demanded such due to their participation in the markets. But I realize that's highly speculative.