Changing the liquidity constant in an existing market

[zack]

I feel like letting people have open buy/sell orders at a specific prices solves the same problem.

For instance, if B in a market was only 1 coin, and I put 100 coins at the price 0.56
Then I would keep buying shares until it cost more than 0.56 for a share, then I stop buying. The remainder of my 100 coins is ready to buy more, if anyone else should ever push the price below 0.56

I don't like changing beta, because I think it pushes the price towards 0.50? Maybe I am wrong about this problem?

[psztorc]

I feel like letting people have open buy/sell orders at a specific prices solves the same problem.

It does, but there's no guarantee (a) that anyone will bother to place those orders, (b) that the orders won't be cancelled, and (c) that people won't try to 'steal insider info' about the event by watching unmatched orders be placed. Beta is for people who want to "buy" the information, without it markets are illiquid and stall out as they did on InTrade, or do today on Predictious and Fairlay.
http://www.overcomingbias.com/2012/07/prediction-markets-fail-to-mooch.html

I don't like changing beta, because I think it pushes the price towards 0.50? Maybe I am wrong about this problem?

It does, but that's more for you to buy at .56, in fact you can buy them for cheaper than .56 so you should be happy about this.

[zack]

ok, I understand now. I think that changing beta this way is a good thing. Maybe we should allow them to simultaneously purchase shares, so that they get first chance at the new reduced price.

What if it automatically purchased the correct amount of shares to keep the price at the same level?

So if you add 10 truthcoins to beta, the software automatically divides it up, and adds maybe only 2 coins to beta, and purchases 8 coins worth of shares so that the price stays the same as before you did this.

[psztorc]

I was envisioning it would work like that, you could submit a pair of trades, linked to each other. This should be possible under SIB trading.