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DesignAnalysis

It's Sometimes Sunny in Philadelphia

Bolton·July 20, 2026·Substack
Prediction markets can test a candidate's true impact if you design them like a natural experiment

Why It's Worth Reading

Proposes using quasi-experimental methods from econometrics — regression discontinuity design and difference-in-differences — to turn prediction markets into causal tools for evaluating candidates and policies. Instead of futarchy's wholesale replacement of governance with markets, this approach uses conditional markets on vote margins and election-day weather to isolate a candidate's true impact from confounding factors.

Some technical background helpful

Concepts

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