initial price of a new market

[zack]

When a market is created, the creator should be able to guess at the initial price.
If his initial guess is fairly accurate, then he can reduce the cost of financing the market.

For instance... maybe 4 coins will be flipped in the future, and the market is deciding whether all 4 will land on heads, or if at least one will land on tails.
If he starts the market price at 0.50, then smart investors will quickly push the price to 0.0525, and they will probably take almost the entire beta*ln(2) deposit.

The creator of the market could have started the price at 0.0525, and then he would have made a profit instead of losing money.

[psztorc]

When a market is created, the creator should be able to guess at the initial price.
If his initial guess is fairly accurate, then he can reduce the cost of financing the market.

He can do this. By simply authoring the market, he only submits the hash / dimensionality, so no one else will know what it is (unless he publicizes this info). He can then make the first trade, although this will cost money, he can be the "smart investor" you describe.