Bounty for good explanations of how subsidies work on free response and multiple choice markets
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How do subsidies added to a free response market work, can someone explain please? What happens to the added subsidy as new answers are added in? I'd like to add subsidy to a free response market but unsure of when to

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How do subsidies added to a free response market work, can someone explain please?

The subsidy is added in random amounts at regular intervals. If you add a subsidy to a market, you should expect it to take "several hours" as a baseline to be fully injected. It won't be done in an hour, but it won't take 3 days either.

> What happens to the added subsidy as new answers are added in?

At each drizzle point, the subsidy will be spread across all answers that exist at that time. It doesn't matter if the answer was brand new or has been in place for ages.

> If I add a subsidy at the start and dont add in options but other traders come and add their answers, does all of my subsidy go towards that OTHER option?

It doesn't matter whose answers they are, the subsidy will be split among all current answers at the time of the drizzle.

> What happens when I add subsidy after n answers have been added?

The subsidy will be distributed in drizzles over the next few hours, to n or n+additional new answers, depending on how many answers exist at the time of the drizzle.

> Do only those answers get the benefit of subsidy?

No. All answers that exist at the time of the drizzle get subsidized.

> Would I get subsidy which went unused due to addition of new popular answers upon market resolution?

The only way a subsidy can go 'unused' is if it is not all drizzled in before the market closes. If you added a subsidy within the last few hours of a market being open, some of it might not be distributed to answers.

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Un-used bounty reclamation service:

My understanding is that it's just extra money paid out to the winning shares.

Which part do you specifically want to know about?

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