LOX (log-odds excess lateness)

A metric measuring how much a forecaster's probability updates lag behind optimal Bayesian updating.

Cluster: Mechanism Design

Related Concepts

• adverse selection — Risk that counterparties trade because they have superior information, causing losses for the market maker.
• liquidity provision — Supplying capital so traders can buy and sell positions without excessive price impact or delays.
• market making — Continuously quoting bid and ask prices to facilitate trading, earning the spread while managing inventory risk.
• information aggregation — The process by which markets combine dispersed private knowledge into a single consensus price signal.

Articles about LOX (log-odds excess lateness)

• The Option Value of Waiting in Prediction Markets by 0xnagu