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Culture War Roundup for the week of January 29, 2024

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Can we solve this with good old free market capitalism?

Yes, if the Government would allow the proliferation of reliable prediction markets. Kalshi is making headway, but it turns out that the government doesn't like people betting on election outcomes so they're still feeling out the boundaries for what is and is not permissible to make contracts on.

One of my slightly tin-foil-hat theories is that the government does not WANT prediction markets to proliferate because that allows people to bypass the state in some subtle ways, and making information about, e.g. legislative policy outcomes and national elections legible; thereby making it harder to influence those outcomes in desired ways. There's really no other way for me to square the fact that they're allowing the proliferation of sports betting across the country but are squeamish about allowing people to bet on national election outcomes.

Me, I would pay a decent sum for a killer app that was basically an (AI-assisted?) prediction market aggregator where I could have consistent feed of the market predictions for various events that might influence my life, then I could enter queries about stuff that I need to make decisions on and get an immediate estimate on the odds of [X] occurring and recommendations for how I can hedge the risks based on my desired outcome. Bonus points if I can set alerts based on a particularly complex set of contracts that signal, e.g., that a war is breaking out or a major disaster is occurring.

Simple example: "My birthday party is scheduled for this weekend, what are the chances that it will rain or otherwise have uncomfortable weather" and then it provides an estimate and provides me with the option to buy shares that will pay out if it rains out my party.


Now, if I were building a business that was trying to make the information environment better, I would try starting up a journalism/news company whose source of revenue was based on accurately reporting on stories before anyone else. That is, the journalists should actually be good at their jobs and confirm breaking stories before the general public hears about them, then when we buy a position in a prediction market that corresponds to our story being true, and when we publish the story, we include a link to that prediction market in the broadcast so the audience can bet against us if they don't believe it.

The main effect here is that our company only profits if we are better at detecting true events before they become common knowledge, and anyone who has better information can try to beat us at our own game. And we don't have to rely on advertisers and thus we're less susceptible to being bent towards an ideological agenda.

I think it would make people more interested in watching 'the news' if they could 'play along' and bet against us if they think we screwed up a story or that they can profit by buying in early because they trust our accuracy.

This does all tend to fall victim to the Oracle problem. That is, who do you trust to be the final arbiter of truth when there's a dispute over an outcome. And THAT is where this benevolent superintelligence of yours might need to come in. I know of no way to truly eliminate counterparty risk, although Augur came close.