The Price system: signals, speculation and prediction
4 important questions on The Price system: signals, speculation and prediction
How do markets link the world?
- This process is voluntary and undirected, since everyone is acting on their own self interest
How do markets link to one another?
-Entrepreneurs can respond in a way that no one predicted.
What is the great economic problem?
- Economics is about making choices.
Example: you want to use oil for more valuable things when its scarce
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What are prediction markets?
These market prices can make signals to predict who will win an election. If you can buy a share of a political candidate, you can predict who'll win
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