Library/Prediction Markets (II): Spoiling the Election Love Story
MicrostructureAnalysis

Prediction Markets (II): Spoiling the Election Love Story

Luca Prosperi·November 2, 2024·Substack
prediction markets reward manipulation, not accuracy, in high-stakes elections

Why It's Worth Reading

Critical analysis of prediction market reliability during the 2024 US election. Documents how four coordinated accounts controlled 23% of Polymarket's open interest, 41% of volume appeared to be wash trading, and argues current platforms lack the structural conditions for reliable forecasting.

Extensive technical background assumed

Concepts

Platforms mentioned: Polymarket, Kalshi

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