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Prediction markets - algorithm

Prediction markets like hollywood stock exchange (, Inkling markets use a automated market maker alogorithm.

I guess they are based upon the algorithm developed by Robin Hanson, PDF ( The paper is highly mathematical and I cannot understand most of it.

Has any one worked/read this paper or anything about automated market makers?
Narasimha Send private email
Wednesday, October 11, 2006
Interesting paper. I'm surprised this didn't get any replies.
Friday, October 13, 2006

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