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Who Aggregates Information? Screening, Rent, and the Coexistence of CLOB and AMM Prediction Markets

Zang, Chengqi et al.
arXiv (All) · Papers
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economicsgeneral-economics
Prediction-market shares differ from traditional financial products in that, with no information or outside utility, classical delta-neutral Central Limit Order Book~(CLOB) market making cannot be financed by payoff-uninformative noise flow. Transaction-level evidence from a major prediction-market
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