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Prediction Market demo using Hanson's Logarithmic Market Scoring Rule (LMSR)

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prediction-market-lmsr

Prediction Market demo using Hanson's Logarithmic Market Scoring Rule (LMSR)

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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:

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Prediction Market demo using Hanson's Logarithmic Market Scoring Rule (LMSR)

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