Economist Robin Hanson Has Proposed a Partial Replacement for Democracy

question 12

Multiple Choice

Economist Robin Hanson has proposed a partial replacement for democracy called Futarchy. Instead of voting on what we want to do and how we should do it, under Futarchy, we would vote on what we want to do, but let prediction markets tell us the policies that would best accomplish our goals. Whatever the prediction markets say would be enacted into law. Who has better incentives for selecting policies that would accomplish our goals: individual voters under democracy or individual traders in Futarchy?

• A) voters under democracy
• B) traders under Futarchy
• C) They both have the same incentives.
• D) Neither of them has any incentive.