PeterMcCluskey comments on Against prediction markets - Effective Altruism Forum

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Comment author: PeterMcCluskey 13 May 2018 04:36:47PM 1 point [-]

I think markets that have at least 20 people trading on any given question will on average be at least as good as any alternative.

Your comments about superforecasters suggest that you think what matters is hiring the right people. What I think matters is the incentives the people are given. Most organizations produce bad forecasts because they have goals which distract people from the truth. The biggest gains from prediction markets are due to replacing bad incentives with incentives that are closely connected with accurate predictions.

There are multiple ways to produce good incentives, and for internal office predictions, there's usually something simpler than prediction markets that works well enough.