i’m trying to understand the point about the vitamin d example. if a futarchy market is set up to predict whether “increasing vitamin d consumption” will “increase average lifespan,” wouldn’t participants who believe that wealth (or another confounder) is the actual causal factor, and not vitamin d itself, be incentivized to bet against the vitamin d policy leading to increased lifespan?
the market’s incentive structure seems designed to filter for beliefs about the causal efficacy of the proposed intervention, not merely correlations. if people believe wealth is the cause, they wouldn’t expect a vitamin d policy to succeed in raising lifespans, and would bet accordingly. it appears there might be a slight confusion between correlation in observational data and the causal impact of a direct intervention as assessed by a prediction market.
i’m trying to understand the point about the vitamin d example. if a futarchy market is set up to predict whether “increasing vitamin d consumption” will “increase average lifespan,” wouldn’t participants who believe that wealth (or another confounder) is the actual causal factor, and not vitamin d itself, be incentivized to bet against the vitamin d policy leading to increased lifespan?
the market’s incentive structure seems designed to filter for beliefs about the causal efficacy of the proposed intervention, not merely correlations. if people believe wealth is the cause, they wouldn’t expect a vitamin d policy to succeed in raising lifespans, and would bet accordingly. it appears there might be a slight confusion between correlation in observational data and the causal impact of a direct intervention as assessed by a prediction market.