Synopsis: Michael Covel speaks with Robin Hanson, a professor of economics at George Mason University. Covel and Hanson discuss the definition of prediction markets; how prediction markets are used politically, as but one example; comparing the prediction markets to the financial markets; Vernon Smith and coming up with the “why” for booms and busts; dealing with a complex world based on our limited abilities; steering towards humanity’s future; Hanson’s physics background, and how he came to where prediction markets became a passion; how prediction markets can make us pay more attention to the truth; Hayek and Mises, and some of their thinking early on; what taboos and idealogical beliefs might stop one from making optimal decisions; if people have employed particular trading strategies to the prediction markets; stop losses as information and as risk preference; setting up a market to bet on geopolitical events in the Middle East, and the controversy based around that; why DC politicians often cannot handle the research Hanson does; and why Hanson has elected to have his head cryonically preserved after medical death based on a cost-benefit analysis. For more information on Robin Hanson go to overcomingbias.com or hanson.gmu.edu. This is a podcast that at first might not appear useful to the trend following community, but it most certainly adds great value. Want a free trend following video: www.trendfollowing.com/win.