In regard to Charron's point about revision, Arbiter proposed a solution that is mentioned in this blog article. I think its a good compromise as it (1) enables efficient discovery of market price, (2) allows people who like to trade against people that opportunity for 3 days (3) still allows people who like the idea of buying unlimited shares at a fixed price at some point (4) noobies don't end up with prices they don't expect.
Someone else had proposed the issue was just a matter of education, and people just need to understand how the "double call auction" works for finding the IPO price. I think this is difficult as I'm sure many people on the Internet don't actually read anything. If they haven't taken the time to figure out how to place a limit order, they likely won't take the time to figure out how the IPO process works either.
Then there were some suggestions to discuss an IPO price in committee and that is not a scalable solution and is contrary to the point of a prediction market.
1
In regard to Charron's point about revision,
Arbiter proposed a solution that is mentioned in this blog article. I think its a good compromise as it (1) enables efficient discovery of market price, (2) allows people who like to trade against people that opportunity for 3 days (3) still allows people who like the idea of buying unlimited shares at a fixed price at some point (4) noobies don't end up with prices they don't expect.
Someone else had proposed the issue was just a matter of education, and people just need to understand how the "double call auction" works for finding the IPO price. I think this is difficult as I'm sure many people on the Internet don't actually read anything. If they haven't taken the time to figure out how to place a limit order, they likely won't take the time to figure out how the IPO process works either.
Then there were some suggestions to discuss an IPO price in committee and that is not a scalable solution and is contrary to the point of a prediction market.