PredictIt

Article

PredictIt is a recurring organization in the Astral Codex Ten archive, appearing 35 times across 35 issues between January 22, 2021 and November 07, 2024. The archive places it in contexts such as “Metaculus is fast becoming what PredictIt should have been”; “PredictIt struck a special deal with the government”; “This is the opposite of a real prediction market like PredictIt”. It most often appears alongside Metaculus, Polymarket, Manifold.

Metadata

Category: Organizations
Mention count: 35
Issue count: 35
First seen: January 22, 2021
Last seen: November 07, 2024

Appears In

- Metaculus (24 shared issues)
- Polymarket (21 shared issues)
- Manifold (17 shared issues)
- Kalshi (16 shared issues)
- Trump (14 shared issues)
- Biden (13 shared issues)
- Ukraine (13 shared issues)
- CFTC (12 shared issues)
- US (12 shared issues)
- Twitter (11 shared issues)
- Democrats (9 shared issues)
- Elon Musk (9 shared issues)

External Links

Source Context

Recovered passages from the original issue text. When the raw archive preserved outbound links inside the source passage, they are listed directly under the quote.

Logistics

January 22, 2021 · Original source

If it's a boring enough news day that you want to cover me, consider instead covering the many other fascinating and under-covered people and institutions in and around the rationalist community, some of whom are probably women or minorities or whatever. The Qualia Research Institute is doing absolutely picture-perfect mad science. Metaculus is fast becoming what PredictIt should have been; I intend to shill it pretty hard but I can't do it all by myself. Catherine Olsson, Ibasho, and MicroCOVID already have one WIRED article about how great they are, but they deserve at least a dozen.

Inline links: Qualia Research Institute, Metaculus, MicroCOVID, one WIRED article about how great they are

Metaculus Monday

February 01, 2021 · Original source

PredictIt struck a special deal with the government where they can run a limited number of predictions as long as nobody is allowed to bet very much. They probably have the most users, but most of them are dumb money, and the restrictions prevent smart money from coming in and replacing them. Also, the market fritters away its limited number of predictions on dumb political horse race stuff. I think of this as a missed opportunity.

Inline links: PredictIt

And finally, since you've been bearing with me so nicely, here's something a little on the lighter side, from PredictIt:

Inline links: Predict, It

Mantic Monday: Scoring Rule Controversy

March 01, 2021 · Original source

This is the opposite of a real prediction market like PredictIt, where you only make money if you beat the average person betting on the question. If you spent one second picking a random number on a thousand PredictIt markets, you would lose lots of money. If you spent an hour researching a really good answer to one question, you would have a chance to beat the market and win.

So PredictIt incentivizes you to add information - to only bet when you are smarter than the market’s previous consensus. Metaculus incentivizes you to subtract information - even if the market was previously smart, dumb people should come in, shift it in a random direction, and move on.

2020 Predictions: Calibration Results

April 05, 2021 · Original source

CORONAVIRUS: 1. Bay Area lockdown (eg restaurants closed) will be extended beyond June 15: 60% 2. …until Election Day: 10% 3. Fewer than 100,000 US coronavirus deaths: 10% 4. Fewer than 300,000 US coronavirus deaths: 50% 5. Fewer than 3 million US coronavirus deaths: 90% 6. US has highest official death toll of any country: 80% 7. US has highest death toll as per expert guesses of real numbers: 70% 8. NYC widely considered worst-hit US city: 90% 9. China’s (official) case number goes from its current 82,000 to 100,000 by the end of the year: 70% 10. A coronavirus vaccine has been approved for general use and given to at least 10,000 people somewhere in the First World: 50% 11. Best scientific consensus ends up being that hydroxychloroquine was significantly effective: 20% 12. I personally will get coronavirus (as per my best guess if I had it; positive test not needed): 30% 13. Someone I am close to (housemate or close family member) will get coronavirus: 60% 14. General consensus is that we (April 2020 US) were overreacting: 50% 15. General consensus is that we (April 2020 US) were underreacting: 20% 16. General consensus is that summer made coronavirus significantly less dangerous: 70% 17. …and there is a catastrophic (50K+ US deaths, or more major lockdowns, after at least a month without these things) second wave in autumn: 30% 18. I personally am back to working not-at-home: 90% 19. At least half of states send every voter a mail-in ballot in 2020 presidential election: 20% 20. PredictIt is uncertain (less than 95% sure) who won the presidential election for more than 24 hours after Election Day. 20%

Inline links: 3. Fewer than 100,000 US coronavirus deaths: 10%

Mantic Monday: Grading My Trump Predictions

April 19, 2021 · Original source

1. Donald Trump remains president at end of year: 95% 2. Democrats take control of the House in midterms: 80% ***3. Democrats take control of the Senate in midterms: 50% ***4. Mueller’s investigation gets cancelled (eg Trump fires him): 50% 5. Mueller does not indict Trump: 70% ***6. PredictIt shows Bernie Sanders having highest chance to be Dem nominee at end of year: 60% 7. PredictIt shows Donald Trump having highest chance to be GOP nominee at end of year: 95% 8. [This was missing in original] ***9. Some sort of major immigration reform legislation gets passed: 70% 10. No major health-care reform legislation gets passed: 95% 11. No large-scale deportation of Dreamers: 90% 12. US government shuts down again sometime in 2018: 50% 13. Trump’s approval rating lower than 50% at end of year: 90% ***14. …lower than 40%: 50% ***15. GLAAD poll suggesting that LGBQ acceptance is down will mostly not be borne out by further research: 80%

During the 2016 - 2020 period, I quadrupled my money on PredictIt.

I started using PredictIt during the 2016 election (I bet $20 on Hillary and obviously lost everything). After that I decided it would be fun to start with some seed amount and see what happened to it over time, so I put in another $200 and was a lot more careful with it. Over the course of a few dozen bets, I was able to turn my initial $220 into about $900 by the end of the 2020 election.

Mantic Monday: Predictions For 2021

April 26, 2021 · Original source

META 107. I double my current amount of money ($1000) on PredictIt: 10% 108. I post my scores on these predictions before 3/1/22: 70%

June 22, 2021 · Original source

For comparison, PredictIt has Adams at 64%, so some good convergence going on here. PredictIt’s NYC mayor market says “17 million shares traded” - if an average share is 50 cents, that means PredictIt has about $8.5 million in volume. Polymarket works a little differently and has yes/no markets for each candidate; the vast majority (a little over $1 million) is on the Yang market. So Polymarket has a little over 10% of the liquidity of PredictIt on this one.

Use Prediction Markets To Fund Investigative Reporting

July 12, 2021 · Original source

Right now there's about $25 million on Predictit saying that Eric Adams will win this November's election for NYC mayor. Suppose some kind of media property uncovered evidence that Adams took bribes or committed some other career-ending indiscretion. In a world where prediction markets were as liquid as stock markets, they could short Adams, reveal his dirty laundry, crash his election prospects, and collect some portion of $25 million.

July 27, 2021 · Original source

PredictIt remains easy to use, high-volume, and focused almost entirely on horse-race political questions. At least we might get rid of Cuomo.

Inline links: PredictIt

So far the volume is a lot less than on PredictIt or Polymarket, but it’s a new public beta, what did you expect?

The most exciting part is the monetary limit, which seems to be $25,000 per market (on buys, not earnings - so in theory you could buy $25,000 one-cent shares and win $2.5 million if you’re right). That’s about 30x the $850 limit on PredictIt. “Kalshi trader” could very easily be someone’s day job - though it’s probably still not worth opening your own investment bank over.

November 15, 2021 · Original source

PredictIt: 97% chance the Republican wins (he did)

PredictIt:

Inline links: PredictIt:

PredictIt: Click for link. I’m fascinated by how many people expect someone who is neither Biden nor Harris to win the Democratic nomination in 2024. Biden is down five cents since this summer without any new health problems (that I know about), and sitting presidents rarely get refused a renomination just because they’re unpopular. Maybe people think Biden’s age wouldn’t have mattered if he was popular, but as it is it’ll make a graceful excuse to convince him to sit out? I still think he’s undervalued.

Inline links: PredictIt:

Mantic Monday: Dogs In Wizard Hats

December 27, 2021 · Original source

Polymarket, PredictIt, and Kalshi are silent on this question for now.

Grading My 2021 Predictions

January 24, 2022 · Original source

META 107. I double my current amount of money ($1000) on PredictIt: 10% 108. I post my scores on these predictions before 3/1/22: 70%

Predictions For 2022

February 01, 2022 · Original source

US/WORLD 1. Biden approval rating (as per 538) is greater than fifty percent: 40% 2. At least $250 million in damage from a single round of mass protests in US: 10% 3. PredictIt thinks Joe Biden is most likely 2024 Dem nominee: 80% 4: …thinks Donald Trump is most likely 2024 GOP nominee: 60% 5. Beijing Olympics happen successfully on schedule: 99% 6. Major flare-up (worse than past 5 years) in Russia/Ukraine conflict: 50% 7. Major flare-up (worse past 10 years) in Israel/Palestine conflict: 5% 8. Major flare-up (worse than in past 50 years) in China/Taiwan conflict: 5% 9. Honduran ZEDEs legally crippled to the point where no reasonable person would invest in them further: 5% 10. New ZEDE approved in Honduras: 30%

Mantic Monday: Ukraine Cube Manifold

February 14, 2022 · Original source

These run from about 48% to 60%, but I think the differences are justified by the slightly different wordings of the question and definitions of “invasion”. You see a big jump last Friday when the US government increased the urgency of their own warnings. I ignored this on Friday because I couldn’t figure out what their evidence was, but it looks like the smart money updated a lot on it. A few smaller markets that Clay didn’t include: Manifold is only at 36% despite several dozen traders. I think they’re just wrong - but I’m not going to use any more of my limited supply of play money to correct it, thus fully explaining the wrongness. Futuur is at 47%, but also thinks there’s an 18% chance Russia invades Lithuania, so I’m going to count this as not really mature. Insight Prediction, a very new site I’ve never seen before, claims to have $93,000 invested and a probability of 22%, which is utterly bizarre; I’m too suspicious and confused to invest, and maybe everyone else is too. (PredictIt, Polymarket, and Kalshi all avoid this question. I think PredictIt has a regulatory agreement that limits them to politics. Polymarket and Kalshi might just not be interested, or they might be too PR-sensitive to want to look like they’re speculating on wars where thousands of people could die.) What happens afterwards? Clay beats me again: For context: So it looks like forecasters expect that, conditional upon Russia invading at all, there’s an 80% chance they’ll take Mariupol in the east, a 66% chance they’ll take Kharkiv (also eastern, but only a third ethnic Russian and currently aligned with the central government), and only about a 30% chance they take Kyiv or Odessa. See also this thread full of speculation in the subreddit. As for me, I’m going all in on “yes” after seeing this tweet: Alexander Cube Last week I speculated that to truly realize the potential of prediction markets, we’d need one that was real money, easy to use, and easy to create markets on. Gustavo Lacerda and Nuno Sempere very kindly drew this picture and named it after me: Nobody has reached the promised land at the furthest point. But all three connected vertices are occupied. Augur is real-money and lets people create their own markets, (but it’s impossible to use - it’s made of complicated crypto contracts that nobody’s made a workable front end for yet). Polymarket is real money and easy to use (but doesn’t let people create their own markets; apparently they’re nervous about resolution disputes). Manifold is easy to use and lets people create their own market, but it’s not real money (they’re American and centralized, so they have to follow anti-gambling regulations). Manifold Markets Speaking of which, they’re open! As the cube suggests, Manifold is a site where anyone can create their own (play money) prediction market. They set the question and they decide when and how it resolves (with everyone else just out of luck if they decide to fake it or rug-pull). It’s a bold strategy, but boy oh boy are people liking it so far: Not actually in order This is a semi-randomly selected sample of Manifold markets, but let’s go through them one by one. The Ukraine market is the biggest on Manifold. It’s also deeply out of step with every other prediction market and the top non-prediction-market authorities - who are all giving numbers in the 50s and 60s. I don’t understand how this is so low - yes, play money < real money, but mostly because play money doesn’t get enough people betting. Here lots of people are betting - it’s the biggest market on the site, and since you only start with $1000 either twenty people have bet everything or more people have bet a fraction - but it’s still wrong. I tried to spend some play money to correct it and it snapped back to just as wrong as it was before. I have no explanation. Midnight The Stray Cat is the second biggest market on Manifold, just after Ukraine. I guess the Internet really liking cats shouldn’t be a surprise at this point. In case you need to do research first I’m told this is the cat in question: Props to Manifold for a bunch of markets like the third one on there, where they eat their own dog food by using their market to predict how their business decisions are going to go. ACX Bot has copy-pasted all of my predictions from 2022. At some point they should be able to compare their results with Zvi (ie a single very smart person), with the contest many of you entered (ie an average of formless crowdsourced predictions), and Metaculus (ie a non-monetary forecasting tournament). I’m looking forward to it! Most of you already know Lars Doucet, who’s written some great ACX posts on Georgism. I don’t know what possessed him to make a Joe Rogan Georgism interviewee market, unless he’s gunning for the position. Valinor is a group house on my street, with ~a dozen people living in and around it. We’ve been talking about fixing the backyard for a while. Now we can bet about whether it will happen. Having a number for this actually affects some of my decisions a little. Connor is hijacking the prediction market to make a poll, which is pretty cute. Dwayne Johnson does not have a 15% chance of winning the election. Manifold is suffering from the usual play money problem, where if you only start out with $1000 in play money, nobody wants to lock it up for three years to make a 15% profit. Vivek’s market, “Will I believe that 13177 is a prime number”, is pretty unusual. I’m interpreting it as a test/demonstration of prediction markets’ information-gathering ability. If you don’t know something and it’s hard to Google, you can make a prediction market about whether you’ll believe it in the future, and people who are able to figure out the answer will bet on it. Based on the 97% YES rate, I’m guessing 13177 is in fact a prime number. What else can you do this with? TANSTAAFL’s “Will I Be Convinced That Justin Trudeau Is Not Fidel Castro’s Son?” market is maybe pushing the limit of this methodology. Anyway, there are lots of me-too prediction markets but this is something genuinely new under the sun. Maybe it will be awesome itself, but I’m also hoping it helps bigger players realize how much more is possible. This Week In Metaculus A few new questions on intelligence enhancement, eg: The question explicitly allows embryo selection, but says it must raise IQ ten points and be available for <25% median income to count. Trivial improvements to existing embryo selection will top out around 9 points, so this seems to be predicting something more interesting, maybe iterated embryo selection at the very least. I’m probably slightly bearish on this one; I believe if it existed someone would find a way to get it, but I think the regulatory climate might be able to prevent the relevant research indefinitely. Improving adult IQ is really hard. This is a bold thing to speculate about! Atmospheric CO2 was 300ish for most of pre-industrial history, 400ish now, and rising. This question predicts 600 in 2100, which sounds like what happens if global warming gets a bit worse but eventually stabilizes. I’m less sure. I think if we make it to 2100, we’ll have so much technology that atmospheric CO2 can be whatever we want it to be. But maybe we’ll want it to stay where it is; once there’s been a lot of global warming and people have moved / shifted lifestyles, it could be equally disruptive to cool the planet back down. Right now it’s 5%, the official government prediction is 10% by 2030, but this market says 17.6%. But look at that probability distribution! It’s a lot of people saying 10%ish, plus a very long tail of very big numbers. I think people are disagreeing about how exponential this change is going to be. Shorts Metaculus is holding an essay contest for people who want to use their AI-related prediction markets to argue the future of AI. $6500 available in prizes.

May 10, 2022 · Original source

Will Russia formally declare war on Ukraine before August?: (new) → 19% Aborcasting IE predicting the results of the recent Supreme Court link. Quick summary: markets already expected that the Court would overturn Roe v. Wade (~70% soon), but this moved them closer to 95% immediately. Democrats’ chances in the mid-terms went up 3-5% on the news. Markets are extremely skeptical of claims that this will lead to bans on gay marriage or interracial marriage, or that the Democrats will respond with (successful) court-packing. A single very small and unreliable market says the leak probably came from the left, not the right. Going through at greater length one-by-one: First: how much did the leak change predictions about the case itself? PredictIt had a market going, which said that even before the leak there was only a 15% chance the Court would make Mississippi allow abortions; after the leak, that dropped to 4%. A Metaculus question on Roe v. Wade overturned by 2028 went from 70% to 95%: A question on court packing hasn’t moved at all, suggesting Metaculus doesn’t think this response is in the Democratic playbook. A question on Obergefell v. Hodges, with good participation both before and after the leak, shows no change in probability - it stays consistently around 18-20%. Here’s PredictIt on Republicans’ chances of taking the Senate in November: The red line marks the Supreme Court leak. After a month of near-stability, Democrats’ chances went from 22% to 29%, before stabilizing around 26%. Markets on the Senate and on other sites like Polymarket tell a similar story. This is as far as we can go without using Manifold. Manifold questions have much less volume than PredictIt or Metaculus, and I have much less confidence in them, but for the record, here are a few: Disclaimer: I moved that one a bit myself, it was around 77% and I thought that was too high. Despite the fearmongering, this one looks about right to me. Disclaimer that Manifold probably can’t handle probabilities this small correctly and there’s no reason to think 0.2% is more realistic than 2%. It’s not 10% though. I couldn’t find some markets I wanted, so I’ve created them on Manifold for you to bet on: Will the Supreme Court leaker’s identity be known by 2023?

Inline links: Will Russia formally declare war on Ukraine before August?, a market going, https://substackcdn.com/image/fetch/$s_!LriF!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fe4dbaa6f-7f4b-465a-bbf3-844e8ee84a41_487x357.png, https://substackcdn.com/image/fetch/$s_!BN85!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F786526b8-4963-4425-9815-d84e13ef5dd7_767x447.png, question on court packing, https://substackcdn.com/image/fetch/$s_!NiHN!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fec90ad32-4f0d-4092-b284-550bba522a4b_773x455.png, Obergefell v. Hodges, https://substackcdn.com/image/fetch/$s_!KuhF!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Faa78df5a-89b2-40a2-aa2f-d11120876cdd_769x466.png, PredictIt, https://substackcdn.com/image/fetch/$s_!x1aF!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F2c12404d-769c-4c3b-b863-ca7084ede93c_675x467.png, Polymarket, https://manifold.markets/fortenforge/did-the-dobbs-v-jackson-leak-come-f, https://manifold.markets/BrianAhuja/will-interracial-marriage-be-banned, Will the Supreme Court leaker’s identity be known by 2023?

Here’s PredictIt on Republicans’ chances of taking the Senate in November: The red line marks the Supreme Court leak. After a month of near-stability, Democrats’ chances went from 22% to 29%, before stabilizing around 26%. Markets on the Senate and on other sites like Polymarket tell a similar story. This is as far as we can go without using Manifold. Manifold questions have much less volume than PredictIt or Metaculus, and I have much less confidence in them, but for the record, here are a few: Disclaimer: I moved that one a bit myself, it was around 77% and I thought that was too high. Despite the fearmongering, this one looks about right to me. Disclaimer that Manifold probably can’t handle probabilities this small correctly and there’s no reason to think 0.2% is more realistic than 2%. It’s not 10% though. I couldn’t find some markets I wanted, so I’ve created them on Manifold for you to bet on: Will the Supreme Court leaker’s identity be known by 2023?

Inline links: PredictIt, https://substackcdn.com/image/fetch/$s_!x1aF!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F2c12404d-769c-4c3b-b863-ca7084ede93c_675x467.png, Polymarket, https://manifold.markets/fortenforge/did-the-dobbs-v-jackson-leak-come-f, https://manifold.markets/BrianAhuja/will-interracial-marriage-be-banned, Will the Supreme Court leaker’s identity be known by 2023?

The red line marks the Supreme Court leak. After a month of near-stability, Democrats’ chances went from 22% to 29%, before stabilizing around 26%. Markets on the Senate and on other sites like Polymarket tell a similar story. This is as far as we can go without using Manifold. Manifold questions have much less volume than PredictIt or Metaculus, and I have much less confidence in them, but for the record, here are a few: Disclaimer: I moved that one a bit myself, it was around 77% and I thought that was too high. Despite the fearmongering, this one looks about right to me. Disclaimer that Manifold probably can’t handle probabilities this small correctly and there’s no reason to think 0.2% is more realistic than 2%. It’s not 10% though. I couldn’t find some markets I wanted, so I’ve created them on Manifold for you to bet on: Will the Supreme Court leaker’s identity be known by 2023?

Inline links: Polymarket, https://manifold.markets/fortenforge/did-the-dobbs-v-jackson-leak-come-f, https://manifold.markets/BrianAhuja/will-interracial-marriage-be-banned, Will the Supreme Court leaker’s identity be known by 2023?

June 13, 2022 · Original source

I hadn’t heard of this guy before, but he’s a billionaire who was a Republican until this year - not the kind of guy I usually think of Angelenos as electing! But the polls all show he’s behind, and PredictIt - which is usually really good for US elections - has him at 31%:

Inline links: he’s behind, has him

3: Here’s presidential nominees on PredictIt ($13,000,000 in liquidity), Polymarket ($30,000), and Manifold ($M3170):

Inline links: PredictIt, Polymarket, Manifold

PredictIt looks good, Manifold looks okay, Polymarket seems to have a long tail of implausible vanity candidates stuck around the 10% level.

July 12, 2022 · Original source

No. Absolutely not. PredictIt’s estimate of Trump’s chance of winning the 2024 GOP nomination is higher than ever. Ah well. Nevertheless.

Inline links: PredictIt’s estimate

There is (inexplicably) no PredictIt market on whether Trump will run, but the relevant Metaculus question is at 82% (and didn’t rise much with the NYT article). If the NYT article caused the big spike in Trump predictions on PredictIt, something is wrong either with their market or with this one.

Inline links: the relevant Metaculus question

Source: PredictIt PredictIt shows Democrats’ chances increasing by about 5% in May when someone leaked the draft opinion, then about 15% in June when the decision was announced.

Inline links: PredictIt

Open Thread 236

August 08, 2022 · Original source

1: Lots of people have asked for my thoughts on CFTC shutting down PredictIt. I’ll write something on this next Monday, but for now I tentatively agree the conclusions of this Karlstack article. Short version: the guy on Twitter claiming responsibility is probably a troll; more likely this is Kalshi/Sequoia Capital weaponizing the CFTC to shut down competitors and get a monopoly. PredictIt’s parent group has a link to contact your member of Congress and other relevant officials here, but the website doesn’t work very well and I doubt the political campaign will work much better.

Inline links: CFTC shutting down PredictIt, this Karlstack article, here

August 16, 2022 · Original source

Regulatory approval in hand, Victoria’s market - PredictIt - became the top prediction market in the US, beloved by a community of over a hundred thousand traders - many of whom exchanged barbs at each other in its raucous and unmoderated comment section. PredictIt estimates were featured in the New York Times, Washington Post, and 538. Some of my best (and worst) memories are about following election results in real-time by watching the relevant PredictIt markets, which usually updated faster than any single other media site.

On August 4, the CFTC reversed itself, saying the PredictIt had “not operated its market in compliance with the terms of the letter” and that it had to shut down by February.

Inline links: reversed itself

There was no explanation of how it might not be in compliance with the terms of the letter. PredictIt has clearly stuck to the 5,000 traders and $850 investment limits, and AFAIK no one has accused them of meddling in world events. Victoria University did hire a private company, Aristotle Inc, to run operations, which seems against the “not for profit” clause. But this happened in 2015, and the relationship between PredictIt and Aristotle hasn’t changed since then. Also, supposedly PredictIt has been “in regular communication” with the CFTC throughout its lifespan to make sure they were on the right side of the law; if CFTC was angry about something they did in 2015, why wouldn’t they have told them before now? So what’s going on?

Inline links: supposedly

Links For October

October 12, 2022 · Original source

12: PredictIt is suing the CFTC over their recent shutdown order; Richard Hanania also seems to be involved in some way.

Inline links: PredictIt is suing the CFTC, also seems to be involved in some way

October 18, 2022 · Original source

Sources: Manifold, CSPI, Metaculus, Polymarket, PredictIt, Insight, GJOpen The lowest forecaster is higher than the highest pollster! Taking 538 as an example, forecasters range from 5 pp higher (Manifold) to 17 pp higher (PredictIt). Tournaments and real-money markets tend to give higher numbers than play-money sites. I would go with 47% on this one, based on the convergence between GJO, CSPI, and Polymarket. CFTC vs. PredictIt (and everyone else), Part II The Commodity Futures Trading Commission is the US agency regulating prediction markets. In August, they told PredictIt (the biggest political prediction market) to shut down, effective in February. Now a motley group of stakeholders are suing the CFTC for a stay of execution. Plaintiffs include: 2 professors using the site as “a source of data for research”

Inline links: Manifold, CSPI, Metaculus, Polymarket, PredictIt, Insight, GJOpen, they told PredictIt

2 PredictIt power users with lots of money on various contracts

Aristotle Inc, the company that gets paid to operate PredictIt

Open Thread 248

October 30, 2022 · Original source

1: Polymarket, Manifold, and PredictIt now have shiny interfaces for predicting the upcoming US midterm elections. In terms of the Republicans taking the Senate, Polymarket is at 65%, Manifold at 58%, PredictIt at 73%, and 538 at 49%.

Inline links: Polymarket, Manifold, PredictIt, 538

Mantic Monday: Twitter Chaos Edition

November 21, 2022 · Original source

Polymarket again within 2% of Manifold. Only 23 traders here, and they’re a lot less optimistic than the Trump traders. FTX! 43 traders, seems like probably. I’ve seen a lot of Twitter takes about how rich well-connected people never get in trouble for this kind of thing, but the markets seem less cynical. 251 traders, and by the way amazing job by “mr22” who started this market on October 5. I also appreciate the relatively late end date - there’s another market “. . . by 2024” which is in the 30s, but that’s because people don’t trust the justice system to move quickly, not because they think he’ll be found innocent. There are a series of markets on sentence length which seem to suggest more than a month but less than a year in jail; this doesn’t really make sense to me and I’m going to nervously ignore them. Only 8 traders here, so take with a grain of salt, but this is a great example of the creative ways people are using Manifold. The market resolves not to “yes” or “no” but to the percent of FTX US users’ funds that they eventually get back; you make money if you were closer than other traders. Here they seem to think most people will only be getting about 14 cents on the dollar. There’s another market for FTX.US users which is a little higher at 29. 34 traders. I think this is too high; I bet it was some random third-tier insider, just because there are more of them and they’re under less scrutiny. Moving on to the effects on effective altruism in particular (just assume I have all possible conflicts of interest here): 272 traders, check the detailed resolution criteria. I think the strongest case is something like the one described in this article, about Center for Effective Altruism leaders discussing concerns about Alameda Research in 2018. The article doesn’t give specifics but my guess is they were the same issues Kerry Vaughn describes here (though see the followup comment by an employee who left FTX, casting doubt on Vaughn’s claims). That means the market hinges on whether Vaughn’s allegations fit the resolution criteria that “the unethical behavior must have been related to fraudulent investment strategies that involve spending other people's money without their permission”. Vaughn describes “poor capital controls, including a lack of distinction between money owned by investors and money owned by Alameda itself”, which sounds like it’s in that direction but could cover a wide variety of badness levels. My guess is everyone will end up agreeing that disgruntled Alameda employees whisper-networked that some things were bad about the company in 2018, some of the rumors got to CEA leaders, the leaders debated whether this was worse than normal for a tech startup, decided it didn’t rise to a level where they needed to publicly freak out, and moved on. Isaac will have to pay attention to the details as they come out and decide whether or not it qualifies. 45 traders. This seems to confirm that the CEA incident is responsible for most of the probability mass above; many fewer people think the FTX Future Fund (ie the charitable branch of FTX responsible for giving out their money) was in on this. Related: this market only has five traders, but I’m highlighting it anyway in the hopes that it gets more. The most money is on 2022. My guess is that we’ll find that they had terrible accounting practices in 2018-2019 of the sort that could be classified as criminally incompetent in a way that bled into fraud (but the trades went fine so nobody was harmed) and then they ramped it up a lot in 2022 to deal with the crypto crash. I think this market will be harder to resolve than people expect. 47 traders. Everyone is panicking about this possibility, but it looks like it’s not too likely. 10 traders. I’ll take this chance to say: a lot of media is predicting the death of EA, or a major blow to EA, or something in that category. Not going to happen. The media isn’t good at understanding people who do things for reasons other than PR. But most EAs really believe. Like, really believe. If every single other effective altruist in the world were completely discredited, I would just shrug and do effective altruism on my own. If they instituted the death penalty for effective altruism, I would do it under cover of night using ZCash. And I’m nowhere near the most committed effective altruist; honestly I’m probably below average. “Saint gets eaten by lions in Colosseum, can early Christianity possibly survive this setback?” Update your model or prepare to be constantly surprised. 6 traders. So, we lost several hundred million dollars of funding in a giant disaster which was also morally outrageous and demoralizing. It happens. But lots of people have already emailed me asking how to send in more money to help fill the gap. Some added something like “it was so depressing that all the FTX money meant my money didn’t make a difference, but now I can help again, and it’s great!” Can these people fill the hole? 32% chance that they can! 10 traders. And if they don’t, we’ll still probably do better than in 2021, before all the FTX money started rolling in. We’ll try harder to hammer in the point about not doing “ends justify the means” reasoning, and do some reorgs and purges to prevent anything like this from happening again, we’ll make a bunch of other changes - some reasonable, some panic-driven - but we’ll go on. If all the far-future stuff collapses, we’ll donate to global health charities. If the global health charities don’t work, we’ll fund GiveWell to sit around and figure out something that does. If GiveWell gets hit by an asteroid, we’ll work on asteroid deflection (actually I think we might already be doing that). If asteroid deflection turns out to be -EV, we’ll switch to shrimp welfare, or give ourselves Zika virus, or any of a million other things. You have no idea how committed we are to continuing to do effective altruism regardless of whether or not it’s “popular”. But it will be popular. 45 traders, resolution criteria at the link, notice the dip when the FTX news broke, followed by recovery as people had time to think it over more. Moving on to slightly less serious topics: The snapshot doesn’t show this, but one of the suggestions is Atlas Rugged. 67 traders, interesting to see where forecasters’ priorities lie. This was a big rumor early on, along with “everyone was on meth”, but the on site psychiatrist said it was false during an interview. 13 traders. WHY DO PEOPLE KEEP GOING ON PODCASTS? Midterms! That was two weeks ago? It feels like years! A week before the midterms, I wrote: Polymarket, Manifold, and PredictIt now have shiny interfaces for predicting the upcoming US midterm elections. In terms of the Republicans taking the Senate, Polymarket is at 65%, Manifold at 58%, PredictIt at 73%, and 538 at 49%. Congratulations 538! Mike Saint Antoine (who wrote the review of Viral in the last Book Review Contest) has put some more work into scoring midterm election forecasts. Here are some headline results: Mike writes: The reason I didn’t just do a three-way comparison between PredictIt, FiveThirtyEight, and Manifold Markets is that the Manifold Markets forecasts included fewer questions than the PredictIt and FiveThirtyEight forecasts. So in order to do a fair comparison here, I’ll be comparing the smaller subset of questions for which PredictIt and Manifold Markets both gave a forecast. So it looks like both Manifold and 538 did better than PredictIt, and there’s no clear way to tell which of the former did better. (except I guess you could do this analysis with just the subset of questions Manifold and 538 share, but Mike didn’t and I’m also not going to). PredictIt has a pretty consistent Republican bias (it’s a minor epistemic sin to accuse a prediction market of having a predictable bias unless you’ve made money exploiting it, I made $600 this election so I’ll let myself pass). In years when Republicans do better than expected, it will probably look better than other markets; in years when they do worse, it will look worse. Still, this is a bias, so I think we should take them doing worse this year as a fair reflection of their accuracy, even thought next year it could go the other way. My main two takeaways here are: PredictIt isn’t yet good enough that the ideal theorems showing prediction markets should be unbiased and better than everyone else apply to it. The obvious explanation is its $800-per-question cap. Polymarket doesn’t have that cap and it did better, although Mike hasn’t done a formal comparison to 538.

Inline links: more than a month, less than a year, FTX.US users, this article, here, Not going to happen, some reorgs and purges to prevent anything like this from happening again, I think we might already be doing that, turns out to be -EV, shrimp welfare, give ourselves Zika virus, wrote, Polymarket, Manifold, PredictIt, 538, Viral, scoring midterm election forecasts, https://substackcdn.com/image/fetch/$s_!z0IM!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fbcfb99af-ec23-4ff9-bcec-ffe248821898_1800x900.png, https://substackcdn.com/image/fetch/$s_!NSlN!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fc9c5602d-e060-454b-8a20-10e925c57526_1800x900.png, https://substackcdn.com/image/fetch/$s_!vBga!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F2b35fbd9-ee89-4f4f-b8b9-832742e483fd_881x289.png, https://substackcdn.com/image/fetch/$s_!h6tt!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F9355d197-997a-4c48-93c0-76abc23f2c12_881x287.png

Mike writes: The reason I didn’t just do a three-way comparison between PredictIt, FiveThirtyEight, and Manifold Markets is that the Manifold Markets forecasts included fewer questions than the PredictIt and FiveThirtyEight forecasts. So in order to do a fair comparison here, I’ll be comparing the smaller subset of questions for which PredictIt and Manifold Markets both gave a forecast. So it looks like both Manifold and 538 did better than PredictIt, and there’s no clear way to tell which of the former did better. (except I guess you could do this analysis with just the subset of questions Manifold and 538 share, but Mike didn’t and I’m also not going to). PredictIt has a pretty consistent Republican bias (it’s a minor epistemic sin to accuse a prediction market of having a predictable bias unless you’ve made money exploiting it, I made $600 this election so I’ll let myself pass). In years when Republicans do better than expected, it will probably look better than other markets; in years when they do worse, it will look worse. Still, this is a bias, so I think we should take them doing worse this year as a fair reflection of their accuracy, even thought next year it could go the other way. My main two takeaways here are: PredictIt isn’t yet good enough that the ideal theorems showing prediction markets should be unbiased and better than everyone else apply to it. The obvious explanation is its $800-per-question cap. Polymarket doesn’t have that cap and it did better, although Mike hasn’t done a formal comparison to 538.

Inline links: https://substackcdn.com/image/fetch/$s_!vBga!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F2b35fbd9-ee89-4f4f-b8b9-832742e483fd_881x289.png, https://substackcdn.com/image/fetch/$s_!h6tt!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F9355d197-997a-4c48-93c0-76abc23f2c12_881x287.png

PredictIt isn’t yet good enough that the ideal theorems showing prediction markets should be unbiased and better than everyone else apply to it. The obvious explanation is its $800-per-question cap. Polymarket doesn’t have that cap and it did better, although Mike hasn’t done a formal comparison to 538.

Prediction Market FAQ

December 20, 2022 · Original source

There’s another market called PredictIt. In 2016 a lot of people bet Hillary, lost big, and left in disgust, so now the site has a small but consistent conservative bias. This is a mispricing it should be possible to make money by correcting. But because of a deal with US gambling regulators, PredictIt won’t let anyone bet more than $850 on their site. Every election year I go to PredictIt, make some bets, and dutifully collect a few hundred dollars in free money. But it would take more like $85,000 to fully correct the mispricing. And although I would be delighted to make tens of thousands of dollars in free money each election year, I can’t do that because of the gambling regulations. And although the contributions of a hundred people like me would add up to $85,000 and correct the mispricing, I guess there aren’t a hundred people who know about this strategy and care enough about making a few hundred dollars to pursue it. So the site continues to lean slightly conservative.

Inline links: PredictIt

when you’re not sure which of many competing experts to trust, you should trust a prediction market instead of any of them Going through these claims one by one: 3.1: Why expect all prediction markets to agree with each other? Either all prediction markets agree with each other, or you can get rich quick: Suppose prediction markets disagreed. For example, suppose the RNC ran an Official Republican Prediction Market that said there was only a 10% chance Democrats would win the next election, and a 90% chance Republicans would. And suppose the DNC ran an Official Democrat Prediction Market that made the opposite prediction: 90% chance Democrats, 10% chance Republicans. Then you could buy a share of “Democrats will win” from the Republican market for 10 cents, plus a share of “Republicans will win” from the Democrat market for 10 cents, and be guaranteed to make $1 when one party or the other wins. You have turned 20 cents into a guaranteed $1. Repeat until you are rich or the mispricing has been corrected. This is just what financial experts call “arbitrage”. You may notice that in finance, people always give specific prices for things like shares of stock, barrels of oil, or Bitcoins. People say things like “Google stock is up to $300”, but never “Google stock is up to $300 on the NYSE, but down to $200 on NASDAQ”. If that was true, people would buy it on NASDAQ, sell it on NYSE, make $100 in free money, and get rich quick. In ideal situations, arbitrage forces everybody everywhere to agree on the same price for a financial instrument. Prediction markets turn claims about truth into financial instruments in a way which forces everybody everywhere to agree on how likely the claim is to be true. 3.2: Why expect prediction markets to be hard for special interests to manipulate? Either a prediction market is not currently mispriced because of a manipulation attempt, or you can get rich quick. Argument: Suppose a prediction market was currently mispriced because of a manipulation attempt. For example, suppose there is a prediction market for whether the sun will rise tomorrow. The true probability is obviously 100%, corresponding to a cost of $1.00. But suppose some special interest who wanted to trick people into believing the sun would not rise successfully spent money to bid the market down to only 10%. This means that you can buy, for $0.10, a share which pays $1 if the sun rises tomorrow. In other words, you can dectuple your money for free. Repeat until you are rich or the mispricing has been corrected. This may sound complicated in theory, but it plays out straightforwardly in real life. As a test, I tried to manipulate the market on whether Austin Chen, founder of Manifold Markets, would be charged with a felony. There’s no reason to think he should be, so the price started at 5%. I spent $200 in Manifold’s play money bidding it up to 95%. Within an hour, other investors noticed the mispricing and corrected it back down to 5% again. 3.3: Why expect prediction markets to be free from bias? Either a prediction market is not currently mispriced because of bias, or you can get rich quick. The argument: Suppose all smart people, including you, know that there is an 80% chance that the Democrats’ economic plan will create new jobs. But suppose that Republicans, because of their partisan biases, refuse to believe it, and say there is only a 40% chance. And suppose the Republicans set up their own prediction market where they bid the price of a share down to $0.40. You can, of course, go on this prediction market, buy shares for $0.40, and double your money in expectation. Repeat until you are rich or the mispricing has been corrected. I already described how something like this happens on PredictIt (a non-ideal prediction market that you can only make a few hundred dollars in expectation by correcting), and that I do in fact make a few hundred dollars every election season. 3.4: Why should I believe a prediction market’s consensus over my own opinion? This is the same argument as “the prediction market will always be at least as accurate as the top expert” only with you in the place of the top expert. Either prediction markets are at least as smart as you are, or you can get rich quick. The argument here is the same as “at least as smart as the smartest expert” argument in 2, except replacing “the smartest expert” with “you”. But just to lay it out explicitly: Suppose you were smarter than some prediction market. Then if you disagreed with the market, usually you would be right and it would be wrong. So look for cases where you disagree with the market, buy those shares, and you will make money in expectation. Repeat until you are rich or the mispricing has been corrected. I like this because it’s a good empirical test, and one that many people have tried. If you think you’re smarter than the prediction markets, bet on them and see what happens! I think most people will find that (over the long run) they lose money, and eventually this will cure them of their delusion that they can beat the markets. A few people might find that (over the long run) they do win money, just as a few people (eg Warren Buffett) can consistently win money on the stock market. Hopefully those people will quit their day jobs and become full-time prediction market traders. They’ll become multimillionaires, and their hard work will ensure that prediction markets stay more accurate than the rest of us. 3.5: Why should I believe that a prediction market makes good decisions about which of many competing experts to trust? Suppose you accept that a prediction market will always be at least as accurate as some well-known expert (eg Nate Silver). But what if you’re not sure who the real experts are? Or what if there are many experts, all saying different things, and nobody knows who to trust? In this case, a prediction market will always be at least as good as any other source (including you) at telling good experts from bad, or at figuring out which of many good experts is the best. By this point you should be able to predict the argument, but for completeness’ sake: Suppose you were better than the prediction market at determining which of many competing experts to trust, or how to aggregate the pronouncements of many experts into a single authoritative opinion. Then if you disagreed with the market, usually you would be right and it would be wrong. So look for cases where you disagree with the market, buy those shares, and you will make money in expectation. Repeat until you are rich or the mispricing has been corrected. To ground this in a real example, suppose there is some new virus which might or might not spread to the United States. A Harvard professor of epidemiology says there’s a 70% chance it will spread, a Yale professor of epidemiology says there’s an 90% chance it will spread, and a guy in a tinfoil hat on Infowars says there’s a 0% chance it will spread because it’s all a fake government plot. If I knew nothing else about this situation, I would probably think there’s about an 80% chance the virus will spread. I trust the Harvard and Yale professors equally much, and the tinfoil hat guy not at all. Suppose I saw a prediction market that was only at 10%, because most people trusted the tinfoil hat guy. I would want to buy YES shares until the price got up to 80%, because in expectation I would octuple my money. Suppose I saw a prediction market that was only at 70%. Now I wouldn’t be sure whether the prediction market was dumber than me (believed tinfoil hat guy) or smarter than me (they know a lot about epidemiology - or about the credibility of specific experts - and have decided to trust the Harvard professor over the Yale professor). Maybe I could improve on this. If I knew things about epidemiology, I could read over both professors’ arguments and try to figure out if one was better than the other. If I knew things about academia, I could pick over both professors’ resumes and see whether the Harvard professor seemed more distinguished or had more respect in her own field than the Yale professor. In the end, I might decide the prediction market was right to price it at 70% (in which case I wouldn’t do anything), or that actually both experts seemed equally expert (in which case I might bid it up to 80%), or that actually the Yale epidemiologist was better (in which case I might bid it up to 90%). 3.5.1: Isn’t it weird to give non-experts (like prediction market investors) the final judgment in which of two experts is right? Yes, but I don’t think this is avoidable. If there were no such thing as prediction markets, and the Harvard epidemiologist said 70%, and the Yale epidemiologist said 90%, and the tinfoil hat guy said 0%, and for some reason it mattered a lot to you which of these was true - then you would still have to make that decision. If there’s some extremely authoritative source who can make the decision for you - let’s say the World Health Organization says “after reviewing all experts’ arguments, we believe that the final probability is 75%” - then great! Either: The WHO is clearly the most trustworthy source - in which case we go back to the Nate Silver situation where the prediction market should be just as accurate as it is.

If we try this plan, then looking back on it ten years from now, will we agree it was a mistake? Prediction markets give us a way to get accurate and canonical answers to questions like these, and to short circuit the usual discussions about how biased different information sources are. See below for some clever, more exotic ways we can use prediction markets. 4. What are the most common objections to prediction markets? These are various objections, some wrongheaded, some true but nonfatal. There are many of them, making this section very long - you might want to skip over any objections you’re not worried about. 4.1: Would prediction markets be ruined by insider trading? That is, suppose there is a market on whether President Biden will resign before the end of his term. President Biden has special knowledge of this, so he could bet on the true outcome and make a lot of money unfairly. He could even change his behavior (eg resign at an unexpected time) just to make more money. Isn’t this unfair? One answer is that normal markets (eg the stock market) face these same problems, but manage them by making insider trading illegal. These laws don’t always work perfectly, but they work well enough that most people are happy to buy stocks. Another answer is that, while this is bad for other investors, it’s not bad for the accuracy of prediction markets, or their use in creating unbiased social consensuses. In fact, knowing that President Biden is insider-trading on a “Will President Biden resign?” prediction market should only increase your confidence in it getting the right answer! This is slightly too rosy, because if insider trading is bad enough for other investors, they might just not trade. This would be a partial effect: investors would be willing to overcome their fear for a big enough payday, meaning that concerns about insider trading probably would increase the likelihood of persistent small mispricings while still not allowing bigger ones (with the exact size depending on how frequent the insider trading was). It’s unclear whether this negative effect would be bigger or smaller than the positive effect from insiders having more information, so in different situations the market might end up either more or less accurate. Overall, economists are split on whether insider trading makes markets more or less accurate. Commodities markets don’t really have insider trading laws right now, and seem to be about as accurate as anything else. I hope prediction markets will experiment with different insider trading rules, and the ones that best satisfy all participants and create the most accurate results will win out. If for some reason this doesn’t work, I don’t expect it to make too much difference either way. 4.2: Would prediction markets encourage harmful or illegal activities? What about the risk of insider trading by committing harmful / illegal acts? That is, could President Biden’s doctor decide to poison him, then make money when he has to resign due to ill health? I think the strongest evidence against is that this basically never happens in stock markets. Tesla stock would plummet if Elon Musk died or resigned, but nobody realistically worries that Musk’s doctor will short Tesla and poison him. Lots of corporations’ stocks would sink to zero if you burned down their offices and factories, but nobody shorts them and then commits arson. Probably this is because there are laws against doing harmful and illegal things, and people have decided that stock market gains aren’t worth breaking the law and getting punished. Since prediction markets have only a tiny fraction of the amount of money that stock markets do, probably people won’t consider it worthwhile to commit harmful actions to manipulate them either. If you were going to murder someone to profit off a market, who would you rather kill: a US politician (the PredictIt market on the presidential election has a volume of about $600,000)? Or a Fortune 500 CEO (whose companies might have market caps in the hundreds of billions)? 4.2.1: What about prediction markets in very specific harmful or illegal activities? I guess if you created a market in “Will someone burn down the 7-11 on Main Street tomorrow at 3:32 AM?”, then bet a lot of money, then did it, that would be bad. I think realistically nobody would bet against you on that. But probably prediction markets should avoid hosting markets on these very specific bad things, just to make sure. 4.3: Would prediction markets give rich people more power? That is, suppose we used prediction markets to assess socially important questions like “will the climate change by such-and-such a number of degrees by 2030?” It would be bad if rich people could manipulate our social consensus on this. But you move prediction markets by buying shares, and rich people can afford more shares than poor people. So doesn’t this mean that rich people can manipulate how concerned we are by global warming? No. See 3.2 for the general reasons why it’s very difficult or impossible to successfully manipulate a prediction market. These reasons apply to rich people too. Suppose a rich person spent $100 million to buy NO shares in “will the climate be warmer in 2030 than today?”, pushing the market’s implicit chance of global warming down to 1%. That means if there is global warming, you could multiply your money by 100x by buying YES. I would immediately invest $10,000 in this market, so that I could get $1 million back in 2030 and retire rich. My $10,000 isn’t going to be enough to fully move this market all the way back - we already said the rich person spent $100 million manipulating it. But “you can get a free $1 million quickly with no downside at an evil rich person’s expense by correcting an obvious misconception about global warming” sounds like the sort of thing that could make it to the front page of Reddit (to put it lightly). I think more than enough people would learn about this to fully correct the mispricing. Is there any amount of money that could successfully manipulate a market? I think the answer is that you need to have more money than the sum total owned by everybody else in the world who wants to make $1 million quick. And at the limit, there’s always Goldman Sachs - who watch financial markets very closely, definitely want to make $1 million quick, and have a lot of money. So I think the most honest answer to this objection is: if you are an evil rich person reading this FAQ, then it will definitely work for you. Please sink $100 million into reducing a prediction market’s chance of global warming to 1%. And make sure you tell me first, so that I can fully marvel at your evil genius. This will work great for you and nothing will possibly go wrong. 4.3.1: But wouldn’t the subtle biases of rich people (which they might genuinely believe) still affect the market more, since they have more money? No. See 3.3 for the general reasons why we should expect prediction markets to be free from subtle biases which people genuinely believe. These reasons apply to rich people too. Suppose rich people have subtle biases which make them wrong more often than poor people. And suppose rich people (wrongly) believe global warming is 75% likely, but poor people (correctly) believe it’s 99% likely. This just reduces to the Nate Silver situation earlier, with poor people playing Nate Silver. The aggregated opinion of poor people is “an expert” which is right more often than the markets. It’s easy for someone to notice this and get rich quick (in expectation) by betting on what poor people think. Since lots of people can easily notice this and want to get rich quick, eventually they will correct the mispricing. Even if rich people have so much more money than poor people that no group of poor people, however large, can ever correct a rich person mispricing, eventually some smart rich person will hit upon this strategy themselves. If no individual rich person does it, Goldman Sachs will definitely do it. 4.3.1.1: What if both rich people and poor people have biases, and neither one is consistently more right than the other? Won’t the market still reflect rich people’s biases rather than poor people’s? Not if it’s possible for anybody to notice these biases and correct for them. Treating the aggregate opinion of poor people as an expert was just one example. If the winning strategy is something like “trust rich people on financial questions, poor people on environmental questions, and the point exactly halfway between them on social questions”, then whoever discovers that strategy can get rich quick. The more often people use prediction markets, the easier it should be to detect strategies like these. 4.4: Aren’t prediction markets worse than superforecasting? “Superforecasting” refers to a variety of forecasting methods similar to those pioneered by Philip Tetlock and the Good Judgment Project. Typically, they would do something like: Ask many smart people to give probabilistic answers to a very well-specified question

Inline links: economists are split

2023

January 31, 2023 · Original source

Taking Stock Prediction market users really want stocks. “Stock” in this sense means an instrument that measures the status of a person, group, or idea. When their status goes up, the stock goes up. When their status goes down, the stock goes down. It feels like a natural way to bet on things like “I’m bearish on Elon Musk and think everyone else is overestimating him.” It’s hard to turn this vague idea into a real financial instrument. You could try tying it to their Twitter follower count, or Google search trends, or net worth, but none of these exactly track “status”. If Musk commits murder in broad daylight, his search volume will go up, his Twitter follower count will stay about the same, his net worth might not be affected, but his status will have gone way down. The current solution is to make no effort whatsoever to moor stocks to the real world and just hope they work out. This could work! It’s kind of like a Ponzi scheme or crypto token. Some big influencer endorses MoonCoin, and MoonCoin goes up, because MoonCoin has gained status, which means more people will want to buy it, because it’s even more likely that more people will want to buy it later. Crypto tokens keep a fig leaf of “and maybe in the cyberpunk future when all transactions everywhere have switched to crypto this will really pay off”, but over time that fig leaf became increasingly threadbare, and a fun low-stakes instrument like Manifold stocks might do fine without it. But the 0% to 100% prediction scale is a bad match for stocks. If Elon started at 50% in 2000, then when Tesla made it big he surely should have doubled. And that brings him up to 100% and leaves nowhere for him to go. Also, people who bet on Elon Musk in 2000 might be miffed that their prescient choice only doubled their money. Probably the solution is some kind of cardinal number. But which one, and at what scale? Again, the lesson from crypto is that maybe it doesn’t matter. Just start at 10 or something or something and see where it ends up. Manifold leadership isn’t totally resigned yet to having stocks be meaningless Ponzi schemes. If you have a better idea for how to run stocks, leave it in the comments here and they’ll probably see it. CFTC vs. PredictIt Update So far it’s not clear if this means indefinite normal operation, or if they’ll spend the extra time trying to wind existing markets down. The overall chance of them winning their lawsuit remains unchanged at around 25%. PredictIt has gotten some sympathetic news coverage, including from the Washington Post. In the process, the Post tried to get some clarity on what terms of the no-action letter PredictIt violated, apparently without success: @CFTC why they're shutting PredictIt down. They give no real answer, just as in the original withdrawal letter. Closest thing we have to an answer is that they don't want other prediction markets. But why? No sense here at all. washingtonpost.com/lifestyle/2023… ","username":"RichardHanania","name":"Richard Hanania","profile_image_url":"","date":"Tue Jan 24 18:12:59 +0000 2023","photos":[{"img_url":"https://pbs.substack.com/media/FnQbawZaYAAKRws.jpg","link_url":"https://t.co/zeKhe8sjnT","alt_text":null}],"quoted_tweet":{},"reply_count":0,"retweet_count":8,"like_count":39,"impression_count":0,"expanded_url":{},"video_url":null,"belowTheFold":true}" data-component-name="Twitter2ToDOM"> @StephenPiment I'm flat appalled the CFTC said \"you violated terms\", but won't tell anyone, @PredictIt included, which ones, and then has big enough balls to try to get the judge to dismiss PI's \"shotgun\" defense. Um, with no info what other case COULD they make?\n","username":"kmett","name":"Edward Kmett","profile_image_url":"","date":"Sun Nov 27 19:01:29 +0000 2022","photos":[],"quoted_tweet":{},"reply_count":0,"retweet_count":8,"like_count":21,"impression_count":0,"expanded_url":{"url":"https://www.bonus.com/news/cftc-predictit-hearings-coming/","image":"https://substack-post-media.s3.amazonaws.com/public/images/8d5a1d5e-49ee-4294-84cd-eb5a4259bbc3_1200x800.jpeg","title":"Hearings Coming Soon in PredictIt Lawsuit, CFTC Asks to Dismiss","description":"The CFTC is seeking to have the PredictIt lawsuit dismissed, while the plaintiffs want the case fast-tracked due to the shutdown deadline.","domain":"bonus.com"},"video_url":null,"belowTheFold":true}" data-component-name="Twitter2ToDOM"> I guess they’ll have to give some kind of explanation during the hearing, right? Related: Richard Hanania has an article on How To Legalize Prediction Markets. The actual advice isn’t very surprising, and mostly boils down to “write letters to the government officials in charge of this”, but like other people I learned something new from the details: In the United States, prediction markets are, with a few minor exceptions, against the law. If you don’t have a legal background, you might think that means that Congress at some point considered the issue, decided people shouldn’t be able to bet on real world events, and passed a law to that effect, which was then signed by the president. But this is not what happened. As with most things, Congress has never directly considered the matter. Rather, prediction markets are illegal due to the discretion of a government agency called the Commodity Futures Trading Commission (CFTC). Why does it have this right? And on what basis has it made prediction markets illegal? […] In 1936, Congress passed and FDR signed the Commodity Exchange Act. In 1974, Congress created the CFTC to enforce the original law, which has been amended on multiple occasions over the years. The CFTC has authority to regulate what are called “derivatives markets.” A derivatives contract derives its value from some kind of underlying asset or benchmark in the real world. The thing to understand about derivatives is that the baseline is that they’re legal. That’s why you can “bet” on the price of oil through a futures contract. The CFTC wasn’t created to ban derivative markets, but to regulate them, though this can involve prohibiting certain kinds of markets altogether. Current law includes the following provision on event contracts, [banning]: activity that is unlawful under any Federal or State law;

Inline links: remains unchanged at around 25%, Washington Post, How To Legalize Prediction Markets, can involve

May 23, 2023 · Original source

Take various actions to incentivize markets that predict world events, and disincentivize “will this market do X?” style gambling. For example, mana won in gambling markets will no longer count towards the leaderboard, and they’ll no longer show as “trending” on the front page. Manifold is in an awkward place. Like many early-stage websites, they have an enthusiastic community, a great product, and not much plan for making money. Their stopgap strategy was to let people buy extra mana with real money. They don’t want to remove this option, because it’s their whole business plan. But it’s a weird thing to do. Some fraction of the people who do it will do it for the wrong reasons. Manifold made the right choice refunding most of the money and taking steps to prevent this from happening in the future. But it was still a challenge the idea that it’s possible to run any kind of gambling-adjacent institution ethically, no matter how careful you try to be. I recently read an article on Sean McElwee, a recently-cancelled Democratic pollster. McElwee got in trouble for lots of reasons, but one was a gambling addiction, and one of the places he gambled was prediction markets (the article doesn’t say which one, but I assume it was PredictIt, the only America-accessible political prediction market that takes real money). PredictIt limits users to a few hundred dollars per wager, this clearly wasn’t the bulk of his gambling problem, and he seemed to do pretty well (his problem wasn’t he lost money, his problem was that he got in trouble for betting on elections that his polls influenced). And I don’t want to exaggerate how worried to be about this. People lose way more money on sports betting and poker every hour. A site that produces lots of great information, raises the sanity waterline, and once a year or so causes someone to lose $29,000 which management immediately gives back because they feel bad - is hardly the face of problem gambling in America. But still, now this is a thing that sometimes happens. Debt Brinksmanship Speaking of people ruining lives with bad financial choices - Congress is debating raising the debt ceiling. If they can’t compromise, the US will default on its debt, with potentially severe economic repercussions. But usually both parties do some brinksmanship but then compromise at the last moment. Will that happen this time too? All three sites think the most likely outcome is that the US successfully raises the debt ceiling (Metaculus is lower than the other two, maybe because it asks about a shorter time period). But when? From Kalshi and Polymarket: What happens if they don’t? The White House report says a “protracted” default (ie for more than three months) could sink the stock market by 45%. Is this an exaggeration? Given that this is about any default, and not just a “protracted” one, I think this backs up the White House claim that this would be pretty catastrophic. EPJ Probes The Long Run Superforecasters are pretty good at telling you who will win next month’s sports game, next month’s election, or next year’s geopolitical clash. What about the longer-term? Can they predict broader political trends? The distant future of AI? Until now, we didn’t know, for a simple reason: superforecasting was only a few decades old. Philip Tetlock did the original Expert Political Judgment experiments in the 80s and 90s. In a predictive success of his own, Tetlock realized this would be a problem early on. In 1998, he got experts to make predictions for the next 25 years. Specifically, he asked his forecasters to predict the course of nuclear proliferation and various border conflicts. Some were geopolitics scholars were were experts in these fields; others weren’t. It’s been 25 years since 1998, so we’re ready to open the time capsule and see how they did. Before answering: how do we judge the results? That is, the subjects made some guesses about the world in 2023. Let’s say a third of them were right. Is that good or bad? Does it mean people can predict the future 25 years out, or they can’t? Tetlock proposes several specific questions, of which I’ll focus on the three I find most interesting: Will forecasters do better than some hacked-together algorithmic guess based on base rates? For example, if we ask “will countries X and Y go to war in the next 25 years?”, will experts outperform just guessing the base rate of war between those two countries (or two similar countries) over a 25-year-period?

Inline links: an article on Sean McElwee, https://kalshi.com/markets/DEFAULT/us-national-debt-default, https://kalshi.com/markets/DCEIL/debt-ceiling-hike, https://polymarket.com/event/us-debt-ceiling-hike-by

23: Room Temperature Superforecaster

August 01, 2023 · Original source

Aristotle Inc is the company that runs PredictIt. PredictIt competes with Kalshi; also, rumor says Kalshi turned regulators against PredictIt and gave them big legal problems. But PredictIt is also naturally interested in promoting permissive regulations for prediction markets, so I was curious what they would say. They not only support Kalshi, but urge the CFTC to allow lower minimum bets than Kalshi requested. This makes sense: Kalshi’s business model is closer to big businesses hedging risks, but PredictIt’s is closer to random individuals making fun bets.

Inline links: Aristotle Inc

“The end of natural pregnancies . . . all babies will be grown in laboratories, with states and medical experts deciding who gets one.” Again, big if true. PredictIt Gets Another Stay Of Execution In 2014, researchers at a New Zealand university created PredictIt, a real-money prediction market focusing on US politics. Real-money prediction markets are somewhere between unregulated futures exchanges and gambling. The US restricts both these things, so it restricts prediction markets too. PredictIt asked the CFTC, the relevant regulatory body, to let them operate anyway, arguing that they were academically valuable and would limit bets to relatively small amounts of money. The CFTC agreed and granted them a “no action letter”, a not-really-binding commitment agreeing not to bother them as long as they followed certain rules. In 2022, Kalshi, a more savvy prediction market with more friends in government, applied to be a fully-regulated futures exchange. Either because of direct action from Kalshi to crush competitors, or just to tie up loose ends, the CFTC revoked their no-action letter against PredictIt and told them to shut down. PredictIt sued the CFTC, saying their decision was “arbitrary and capricious” and violated federal regulations saying agencies had to explain their actions and give people a chance to respond. The original court that was hearing the lawsuit dragged its feet, so PredictIt appealed to the Fifth Circuit Court of Appeals, who issued a preliminary injunction allowing them to keep operating. Now the Appeals Court rules in their favor (article, court opinion), accepting most of the legal philosophy behind their challenge, like: That no-action letters are real federal regulations, and agency actions overturning them must meet the normal standards for agency actions

Inline links: article, court opinion

In response to the lawsuit, the CFTC rescinded their original cancellation of the no-action letter, then cancelled it a second time in a way that put more effort into complying with the regulations around agency action. But the Appeals Court ruled that they were going to rule on CFTC’s original bad action , and not this later better action, and let other courts figure out what to do about the better action. I don’t know whether this means things are looking good for PredictIt, or whether this means the CFTC will start a new case with its better action and the court will agree that it is better. The decision didn’t seem to move the market on overall lawsuit success. Although I like the result of this decision, I’m worried about the ruling that no-action letters constitute binding commitments whose amendment or cancellation requires careful agency action with every t crossed and every i dotted. Why would any government agency ever give a no-action letter now? The Mantis Of Wall Street I ran into some finance people at the NYC meetup this week and asked why they weren’t using more advanced forecasting technology - prediction markets, superforecaster tournaments, calibration training, that kind of thing. A common reply was “who says we aren’t using it?” When I asked for details, the two types of answers I got were: We’re using in-house proprietary software, we won’t tell you anything about it, and even if we did, we’ve optimized for making it hard to explain so that any accidental leaks don’t risk threatening our competitive edge.

Inline links: then cancelled it a second time, the market on overall lawsuit success

August 28, 2023 · Original source

Kalshi: https://kalshi.com/markets/supercon/roomtemp-superconductor-reported Both reached the 40s to 50s! I think there just wasn’t enough smart money to drown out the people who wanted to bet on an exciting thing being true, or who were unduly influenced by a social media environment optimized to keep their attention by convincing them that an exciting thing was true. I have never claimed prediction markets are always good. All I wrote in the Prediction Market FAQ was that either a prediction market will be good, or you could make lots of free money. In this case, it was the second one. I regret I only made $30. I do hope this situation will improve over time, as over-eager forecasters get burned and dollars flow from dumb money to smarter. [EDIT: I should have included something about Metaculus here, but it’s confusing. I think the most popular Metaculus market was lower because it had stricter resolution criteria (the first replication had to be positive, instead of any replication) but that otherwise Metaculus raw probabilities mirrored everyone else’s. We don’t know how their algorithmically processed probabilities did yet and I’ll report on that information when I get it.] Salem/CSPI Tournament Winners The Salem Center and the Center For The Study Of Partisanship And Ideology, two think tanks associated with right-wing intellectual Richard Hanania, sponsored a prediction market tournament last year. Participants got $1000 in play money to bet on selected markets about current events; winners would be interviewed for a well-paying academic sinecure at one of the think tanks. Now the tournament is over. Winners have yet to be announced, but unofficially, everyone knows who they are: First place out of 999 participants is zubbybadger. Zubby is a prediction market veteran who was featured in a Washington Monthly article last year for his great track record in political betting (he’s made > $150,000 on PredictIt). Now he works as a “community manager” for Kalshi (I don’t know what this entails). Second place was Robert from Considerations On Codecrafting. He’s written a detailed reflection on his experience (part one, part two) which is my main source for this section and highly recommended. He describes himself as “having absolutely no experience with prediction markets”. Third place was Johnny Ten-Numbers, about whom I can find no further information. You can see the rest of the top 20 at the very bottom of this post. Reading Robert’s story of his experience, I’m struck by how little of the competition at the top was about predictive accuracy. Everyone in the top 20 was a very accurate predictor (Exactly equally accurate? Hard to tell.) What separated 1st place from 20th, aside from luck, was things like: Ability to move fast - both in responding to news, and in taking the other side of bad bets. Several top performers programmed bots to give them an edge here.

Inline links: Prediction Market FAQ, selected markets about current events, zubbybadger, featured in a Washington Monthly article last year, Robert, part one, part two, Johnny Ten-Numbers

January 30, 2024 · Original source

And Johnson chronicles other problems with them. For example, long after the media called the 2020 election for Biden, PredictIt held on to a ~9% chance of a Trump landslide so massive it could not possibly have occurred even if he won all of his voting fraud challenges. Betting sites favored Biden to win all swing states, but Trump to win overall. The whole thing was a mess.

Johnson makes a pretty reasonable guess about the cause: lots of dumb money. People use their pocketbooks to root for their favorite candidate. Normally in a functioning market smart money would take the other side and set the final price, but the high transaction costs, long waits, and regulatory limits on prediction markets mean it’s not generally worth smart money’s time to correct the mispricing; Goldman Sachs isn’t going to hire statistics PhDs to make a model just so they can bet $850 on PredictIt.

…Metaculus and PredictIt are 50-50, Manifold favors Biden, and Polymarket favors Trump. Shouldn’t really be possible, should it?

Inline links: https://www.predictit.org/markets/detail/7456, https://manifold.markets/jack/who-will-win-2024-us-presidential-e, https://polymarket.com/event/presidential-election-winner-2024?tid=1706346316664

Open Thread 323

April 01, 2024 · Original source

A lowly data analyst with a background in economics, from Chicago IL. I placed bets on PredictIt during the 2016 election cycle and came out slightly behind after transaction fees, but otherwise have no formal forecasting experience. My "strategy" consisted of going with my gut (cue the Colbert clip) and skipping the questions where I had no prior information to go off of. I credit all success to luck and mindlessly absorbing copious amounts of information on Twitter (mostly TPOT accounts). If people want to contact me, they can do so at smallsingapore[at]gmail[dot]com (I'll respond more promptly, I promise haha).

Inline links: smallsingapore[at]gmail[dot]com

May 13, 2024 · Original source

Does this change much? The CFTC already prohibited these in practice - they were in the ask-for-permission gray zone, but whenever someone asked them for permission, they said no. The only semi-exception was PredictIt, which was small enough and established enough that they got grandfathered in; the CFTC tried to go after them, but got bogged down enough in the courts that PredictIt isn’t quite dead yet. So on a first read, this slightly strengthens the CFTC’s case against PredictIt, tells everyone else to give up hope, but doesn’t really alter the landscape.

This will probably have some effect on PredictIt’s legal case, but I can’t predict exactly what.

Prediction Markets Suggest Replacing Biden

July 02, 2024 · Original source

I assume they chose these three because they’re the only ones discussed enough to have enough data. I am following their lead. I appreciate John and Maxim’s work, but I’m not completely comfortable trusting it. Their model is based on results from Betfair, Smarkets, PredictIt, and Polymarket. But I don’t know much about the first two (as an American, I’m banned from even reading Betfair), and the latter two are notoriously bad at partisan political questions. They usually overestimate Republicans’ chances, partly because Democrats’ opposition to online political betting has turned the pool of online political bettors disproportionately red. While a fluid and easily-accessible prediction market should be able to avoid biases like these, neither PredictIt nor Polymarket really qualifies. The CFTC, which regulates prediction markets, has crippled both - PredictIt has very low maximum investments per market, and Polymarket is crypto-only and banned for US citizens. These have prevented their biases from being corrected and made both of them perform relatively weakly in head-to-head contests. And Stossel/Lott’s focus on betting sites automatically excludes two of the biggest and most historically accurate forecasting engines from their calculation - Metaculus and Manifold. In order to get numbers I trusted more than theirs, I looked at Metaculus, Manifold, PredictIt, and Polymarket, weighting each by how much I trusted it. Here’s what I found: The Biden number is about 4% higher than Nate Silver’s model over the same time period; see below for why that might be. [EDIT 7/2/24: Original version had a miscalculation which decreased everyone’s odds by about 10%. Above version should be correct.] You can find my sources at the bottom of the post. “Explicit” odds are based on questions like “What are the chances of Biden winning if he is the nominee?” “Implied” odds were generated by combining the questions “What is the chance of Biden being the nominee?” and “What is the chance of Biden winning?”; this is safe enough with Biden, but with unlikely nominees like Newsom, some of the percentages can get small enough that they start running into small-number-biases and become less trustworthy. I’ve weighted each market’s explicit calculation higher than their implicit one to compensate. A possible objection to these results: conditional probabilities don’t exactly reflect the intuitive concept of decision-making. That is, we’re not asking “We want to know whether or not to keep Biden, so what are the chances that he’ll win if we do?”, we’re asking the market for the chance that he’ll win, in the set of worlds where people decide to keep him for other reasons. We should expect this to overestimate his performance. That is, imagine that tomorrow, Biden has completely recovered, he easily wins his next debate with Trump, and everyone agrees the most recent debate was just a fluke - in that world, he is both more likely to be nominated and more likely to win. Alternatively, if tomorrow he gets much worse and can’t even speak in full sentences, he’s much less likely to be nominated and much more likely to lose. Since the real world includes both those possibilities, restricting ourselves to the set of worlds where he gets nominated means we’re overestimating the chance that he wins. There are similar-albeit-less-severe problems with other candidates - if we choose Newsom, that might be because he won some kind of debate or process versus Harris and all the other potential replacements. Overall I expect this to be mostly correct, but probably overestimate Biden’s chances by a percent or two relative to others. Along with these three candidates, Metaculus had an explicit “should the Democrats replace Biden?” question: Manifold also asks how Democrats will do if they replace Biden (without specifying a particular replacement): We can compare this to their Biden market… …and find that once again, they expect replacing Biden to go better (though I think 51% is just cope). At the Manifest prediction market conference in early June, I interviewed Nate Silver: …and asked him for his probability that the Democrats would win this election, versus his probability that the Democrats would win conditional on Biden not being the nominee (specifically “drops dead tomorrow of natural causes”). He said 40-45% chance normally, 50% chance without Biden. This was before the debate, but I think it matches the markets’ opinion that switching candidates would help the Democrats’ chances - and this has only become more true since the debate. On the other hand, polls asking people how they would vote in possible matchups don’t show any advantage of alternate candidates over Biden. Here’s the only post-debate poll I could find: And if Biden does need to be replaced, Democrats mostly support Harris, who the prediction markets find least promising: Maybe Democrats are the wrong people to ask - they’re already going to vote Biden, so you want someone who’s more attractive to independents. Of course, in a normal primary it would be Democrats making the decision. But if elites are going to do something behind closed doors, maybe they should take advantage and choose the candidate most likely to win, for once. I think these polls are the strongest objection to the prediction markets’ verdict. You could make an argument where prediction market users are mostly educated liberal white males, and even though they’re incentivized to honestly determine what ordinary people think, they’re too out-of-touch with ordinary people to do so effectively. Or they might be over-fixating on “voters don’t like Biden’s senility” without considering that, even if voters didn’t know Biden was currently senile before Thursday, they probably guessed that he would become senile sometime in his four-year term, and had basically accepted that his aides would do the hard work. Maybe they prefer a well-known likeable incumbent over an unknown quantity (and the unknown quantity’s potential new/weird aides), even if the well-known likeable incumbent is senile. Maybe elites know more than we do about how hard it is to inject a new candidate at the last moment, how dangerous it is to have someone who hasn’t been thoroughly vetted for scandals, et cetera. Still, for now I trust the prediction markets. I think replacing Biden would add ~10 prcentage points to the Democrats’ chance of victory. At the end of this post, I’ll list the prediction markets I’m using as sources. But before then, a brief interlude of: Fuzzy Subjective Human Factors I Am Not Really Qualified To Talk About Many people on Twitter are asking “how could anyone possibly have been stupid enough to not realize that Biden was senile?” I was that stupid. I didn’t say it openly, because I’m at least smart enough to have a high threshold for giving my opinion on political things I don’t know much about. But I thought it in my heart. So in case the people asking “how could anyone have been that stupid?” actually want an explanation, here’s my former reasoning. Republicans have been accusing Biden of being senile (and the Democrats of hiding it) for at least five years now. Before the 2020 debates, they were excited that this was when they could finally prove once and for all that Biden was senile. Then Biden did fine, and they retreated to “well he’s senile but they have some secret drug they’re giving him, just during debates, that makes him look fine”. Notice this is from 2020; according to polls, he did win the debate that year (source) I think a lot about experimental cognitive enhancement drugs, and I can say with confidence that nothing like that exists. Stimulants can help people with mild dementia be more active and motivated, but they don’t really improve cognition directly, and they can’t make a demented person temporarily lucid. Still, for the past four years, every time Biden was going to do something - a press conference, a State of the Union, whatever - the Republicans would say “ha, this time is going to be the proof that he’s senile!” And then he would always do fine, and they would retreat back to “I guess he used the secret drug this time too”. The satire site Babylon Bee had some funny articles about this: Babylon Bee, after Biden gave a good State of the Union speech earlier this year. Meanwhile, the Democrats were spreading the alternate narrative that Trump was senile. This one has gotten less press, because I don’t know how many people really believed it. But it came up occasionally, along with out-of-context video snippets where Trump said or did something dumb or meandering. Of course, anybody with a presidential candidate’s level of public exposure will have a few gaffes. Even if they don’t, you can always deceptively crop something so it looks like they did. Wait, why is a psychoanalyst getting quoted as a top expert in dementia? (source) I didn’t know you could diagnose someone via Change.org petition, but 2544 people who claim to be licensed professionals can’t be wrong! So with the constant attempts to prove that both candidates were senile, the constant demonstration by both candidates that they weren’t, and the constant retreat into conspiracy theories of “I guess he used the magic drug again but we’ll get him next time!”, I just tuned out this entire category of thing. And I guess I kept it tuned out longer than I should have, whoops. Reversed stupidity is not intelligence. Even if liars are saying something for their usual liar reasons, it can still be true. For twenty years, people spread false rumors that Castro was on his deathbed, but this didn’t make Castro immortal. In the same way, I should have figured out that even if I couldn’t trust any particular claim that Biden was senile, the prior for an 81 year old becoming senile was still high. But I guess I assumed that if he was becoming senile, some Democratic elites would have secret knowledge about it, and they couldn’t possibly be so stupid as to deny it while also scheduling him for a debate where it would inevitably come out. So I figured the Democratic elites who were closest to him thought he was doing well, and I trusted them more than the people who had been wrong every time for the past five years. I’m still confused what those elites were thinking. Reading the news coverage for the past few days (including some video clips from a post-debate rally where he seemed noticeably better) it seems like some combination of: He has good days and bad days, and they were hoping this would be a good day.

September 17, 2024 · Original source

Still, it’s hard to overstate their dominance. Remember, their presidential election market has $910 million. For their competitor, PredictIt, the same number is $37 million. Kalshi doesn’t have election bets (more on this later) but their biggest markets look to be in the $2 - $5 million range.

Inline links: is

Mantic Monday: Judgment Day

November 05, 2024 · Original source

This awkwardly combines two questions: how much will we know when, and how paranoid will CNN be about premature declarations? I would be happier with a question about when prediction markets themselves will go above 90%, but that might be loaded too - last election, PredictIt shares in Trump took ludicrously long to go down to zero, because shareholders kept holding out hope that his election challenges would succeed.

Congrats To Polymarket, But I Still Think They Were Mispriced

November 07, 2024 · Original source

Another group - the real-money markets - said the election was 60%. Polymarket was the leader here; a group of smaller prediction markets, including Kalshi, Betfair, and PredictIt - were probably just changing downstream of Polymarket, as traders tried to arbitrage the bigger site’s odds.

As we speak, PredictIt says there’s a 7% chance that Kamala Harris will be the next President. Commenters are debating whether maybe Biden will resign in her favor so she can get to be “first woman president” for a few months. But long after Biden won the last election, PredictIt said there was a 9% chance Trump would be the next President; some commenters suggested that maybe he would #StopTheSteal and win a fair recount (aside from the inherent implausibility of this, some of the specific scenarios bettors placed money on required him to win California, where his campaign hadn’t even asked for a recount).

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Astral Codex Ten

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