We study how prediction market rules — resolution typology, oracle design, and trading constraints — affect price accuracy, manipulation resistance, and the quality of the information aggregated.
A prediction market is only as good as its rules. The resolution mechanism determines whether prices reflect genuine beliefs or strategic manipulation. The oracle design determines who can influence outcomes and at what cost. The fee structure determines who participates.
These are mechanism design questions with real stakes: misconfigured markets have cost participants money and eroded trust in the whole asset class. Getting the mechanism right is not merely academic.