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by jahooma
1550 days ago
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Great questions! 1) There are three insiders on this decision which would be the three cofounders of this site (including me and the OP). We wouldn't insider trade because we genuinely want to know the answer to this question. The market is also tied to what we actually do (and we're not going to lie!). 2) This is both for you to predict what we will do, and to convince us. If you propose a DB and make a case for it, you can gain in expectation because maybe there really is like a 7% chance we'd pick it. So buying up shares from 0-7% is a win for you. Alternatively, if you think that one DB choice is much better than the others, and we would be somewhat likely to figure that out, then you might gain by buying shares in that answer. Basically, I think the incentives are good! We're using a more rigorous mechanism — prediction markets! — to do Q&A better than Stack Overflow. |
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2) Right, so, the way this can go wrong in theory (not saying it will happen in practice) is if a large group of users, or a small group with a lot of points, decide to all get together and focus on one alternative regardless of how good it is. They predict that alternative really strongly and vote against / predict against all the others.
Then, again in theory, you (the site operators) look at the votes and say 'wow, this database must be much better than all the others, we'd better use it.' Then the colluders all get their predictions proven true, so it's a self-fulfilling prophecy.
Here's one research study that looked at this kind of issue, although they end up not finding a lot of manipulation: https://www.researchgate.net/publication/315529106_Manipulat...