Use Prediction Markets To Fund Investigative Reporting

Source: Astral Codex Ten
by Scott Alexander

“Hindenburg Research has a great business model: 1. Investigate companies 2. … until they find one that is committing fraud 3. Short the fraudulent company 4. Publicly reveal the fraud 5. Company’s stock goes down 6. Profit! I’ve been thinking about them recently because of the debate around funding investigative reporting. It goes something like: investigative reporting is a public good. Everyone benefits from knowing about Watergate. But it’s hard for investigative reporters to capture the value they produce. Very few of the people who cared about Watergate bought subscriptions to the Washington Post. … if there were good prediction markets, you could fund investigative reporting the same way Hindenburg Research funds its investigative reporting.” (07/12/21)