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 […]