Posted on 2010/07/12, 12:21, by aj, under
marketsw.
At the end of my previous post I mentioned some thoughts on dealing with more interesting initial states ($q^0$). We’ll define our initial state by choosing the amount of funds we’re willing to lose $F$, and a set of initial prices $0 < p_i(q^0) < 1$. Unless $p_i(q^0) = \frac{1}{n}$ for all $i$, we will [...]
Posted on 2010/07/11, 04:24, by aj, under
marketsw.
Some additional notes on implementing Hanson’s Logarithmic Market Scoring Rule, based on David Pennock’s post from 2006. Usage is to is to pick $n$ distinct outcomes, such that exactly one will be true, and then to trade contracts that correspond with each outcome, so that if the outcome occurs the corresponding contract has a unit [...]