Prediction Markets Lack Institutional Uptake

Updated: 2026.01.13 16D ago 1 sources
High‑quality, high‑volume geopolitical prediction markets now exist (Polymarket, etc.), but their probabilistic outputs are not yet institutionalized into policymaking, media coverage, or diplomatic routines. That missing institutional plumbing—official channels that monitor, vet, cite, and act on market probabilities—explains why markets haven’t 'revolutionized' public decision‑making despite producing useful, convergent probabilities. — If prediction markets are to improve public decisions (foreign policy, disaster planning, elections), we need durable institutional linkages (media standards, official dashboards, legal guidance, whistleblower‑resistant ingestion protocols) that translate market probabilities into accountable action.

Sources

Mantic Monday: The Monkey's Paw Curls
Scott Alexander 2026.01.13 100% relevant
The article cites Polymarket’s monthly volumes, Kalshi’s sports concentration (81% sports), Polymarket founder wealth, and the $686k Musk‑tweet market as evidence that volume and signal exist, but notes media and state actors largely ignore markets for events like Iran protests.
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