Library/Prediction Markets Don't Bend Reality
FundamentalsOpinion

Prediction Markets Don't Bend Reality

Adhi Rajaprabhakaran·February 3, 2026·Substack
prediction markets are thermometers, not thermostats, for future events

Why It's Worth Reading

Responds to Kyla Scanlon's New York Times op-ed claiming prediction markets create reflexive loops that alter outcomes. Argues that unlike stock markets, prediction markets lack causal mechanisms through which odds could influence the events they forecast, making them thermometers rather than thermostats. Attributes concerns about market influence to journalism failures in contextualizing odds, not structural flaws in market design.

No technical background needed

Concepts

Related Reading