Futarchy: Vote Values, But Bet Beliefs
Speculative markets in essence offer to pay anyone who sees a bias in
current market prices to come and correct that bias.
Speculative market estimates are not perfect. There seems to be a
long-shot bias when there are high transaction costs, and perhaps
also excess volatility in long term aggregate price movements. But
such markets seem to do very well when compared to other
institutions.
-- Futarchy: Vote Values, But Bet Beliefs by Robin Hanson.