> It has been shown that as bettors gain more information about the bets of others, predictions lose accuracy and bettors converge to a consensus value instead.

This makes intuitive sense to me; is there a name for this phenomenon?

A prediction platform’s biggest value is publicising information from possible insiders, who at some point will work harder to maintain secrecy not to lose their informational advantage. So all that remains are people gambling on public info.

That said, greed from insiders looking to make a quick buck will always skew the price towards ‘truth’