This refers to a form of government where voters get to vote on the values that need to upheld by their government, but the best policies that need to be adopted in order to achieve these popular values is decided through the means of prediction markets. It is believed that prediction markets, where investors bet money on the future outcomes of various policies, can offer better policy ideas than regular democracies where politicians decide the policies of the government. Futarchy was first proposed by American economist Robert Hanson who summarised the idea as “vote on value, but bet on beliefs” in a manifesto released in 2000.
Published - June 28, 2019 12:15 am IST
