I think the first question to think about is how to use them to make CDT decisions. You can create a market about a causal effect if you have control over the decision and you can randomise it to break any correlations with the rest of the world, assuming the fact that you’re going to randomise it doesn’t otherwise affect the outcome (or bettors don’t think it will).
Committing to doing that does render the market useless for choosing policy, but you could randomly decide whether to randomise or to make the decision via whatever the process you actually want to use, and have the market be conditional on the former. You probably don’t want to be randomising your policy decisions too often, but if liquidity wasn’t an issue you could set the probability of randomisation arbitrarily low.
I think the first question to think about is how to use them to make CDT decisions. You can create a market about a causal effect if you have control over the decision and you can randomise it to break any correlations with the rest of the world, assuming the fact that you’re going to randomise it doesn’t otherwise affect the outcome (or bettors don’t think it will).
Committing to doing that does render the market useless for choosing policy, but you could randomly decide whether to randomise or to make the decision via whatever the process you actually want to use, and have the market be conditional on the former. You probably don’t want to be randomising your policy decisions too often, but if liquidity wasn’t an issue you could set the probability of randomisation arbitrarily low.
Then FDT… I dunno, seems hard.
Yep!
“If I randomize the pick, and pick A, will I be happy about the result?” “If I randomize the pick, and pick B, will I be happy about the result?”
Randomizing 1% of the time and adding a large liquidity subsidy works to produce CDT.
I agree with all of this! A related shortform here.
An interesting development in the time since your shortform was written is that we can now try these ideas out without too much effort via Manifold.
Anyone know of any examples?