

Why I will no longer be trading on the Intrade prediction markets - gwern
http://lesswrong.com/lw/3l2/2011_intrade_fee_changes_or_intrade_considered_no/

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lkrubner
I am sad about this. The cost of costing things necessarily introduces some
tiny sliver of irrationality into any market. That is, putting a price on
something takes time and resources, but time and resources are finite,
therefore no market can hope for infinitely rational prices. If these price
changes chase away some of the smarter traders from InTrade, then trading
becomes slightly less rational (or rather, the prices do). And yet, everything
must have a cost, and so there is no way to wholly avoid this problem. All the
same, InTrade interests me. I've haven't traded there yet, but I plan to jump
in this year, unless the other prediction markets take off.

