Prediction Market demo using Hanson's Logarithmic Market Scoring Rule (LMSR)
TODOS:
- Form for creating markets. Specify number of outcomes N, names of outcomes, and B vector (initial liquidity and probabilities)
- Sell an outcome (equivalent to buying a fraction of a share each on the other outcomes)
- Scaled outcomes (continuous value, rather than discrete)
- Volume-parameterized market maker (aka liquidity-sensitive. B increases with trading volume)
References: