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Erik
@eriks
many, many lessons in there ✍️ free markets optimize for truth, not clicks “Now, we get to the important part: predicting the election is just the first app. The broader concept is that you can use finance as a way to align incentives in order to provide viewers with valuable information. Now, one natural response is: isn't all finance fundamentally about information? Different actors make different buy and sell decisions because of different opinions about what will happen in the future (in addition to personal needs like risk preferences and desire to hedge), and you can read market prices to infer a lot of knowledge about the world. To me, info finance is that, but correct by construction. Similar to the concept of correct-by-construction in software engineering, info finance is a discipline where you (i) start from a fact that you want to know, and then (ii) deliberately design a market to optimally elicit that information from market participants.”
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SODIQ OLAWALE 👨🦲
@onbloaded
Lesson in there
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