Should creators set the initial probability of daily free markets to their true beliefs?
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102Ṁ88resolved May 22
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Trying to understand the implications of the initial probability setting, especially for daily free markets where the initial $100 liquidity is provided by Manifold, not the market author.
Some of the potential considerations:
* Author profit: It seems like setting the initial probability to your true belief is the worst for the author in terms of profit, compared to setting it to some other probability and buying it to their desired probability?
* Liquidity: How does liquidity differ in those two scenarios?
* What's considered fair, and what are the community norms?
https://manifoldmarkets.notion.site/Maniswap-ce406e1e897d417cbd491071ea8a0c39 has background on the market mechanism.
I'm looking for comments to help me understand and answer these questions. I will resolve based on how I think it's best for me to act as a market creator.
This question is managed and resolved by Manifold.
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