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You would also expect people who are in it to make money to push the price back down if it's overvalued.

Exactly. That's correct. And I agree...with conditions. You're appealing to the efficiency of a large market. When it's efficient, with plenty of participants, yes, the price of the share (odds that Obama/Romney is elected) should accurately reflect all known information. But Warrl's solid, but arguable point is that it's too small - therefore not efficient.


If it's a small market, then the price should be easy to push down as well as push up.
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