A Simulator for Prediction Markets: Two Ways to Bet on the Future

Published April 8, 2026

I asked Claude to create a simulator with a “help” page to create an interactive showcase of how prediction markets work.

The result: a single HTML file you can open in any browser, no login, no dependencies. Four players, 500 Mu each (Mu is the attention currency in WePredict, our prediction marketplace). A question of your choice. Two mechanisms to choose from.

Parimutuel is the classic racing-style model — everyone stakes once, winners split the pool, and your payout only finalises at resolution. Simple, fair, zero house edge.

LMSR (Logarithmic Market Scoring Rule) is what powers modern prediction platforms like Polymarket. An automated market maker quotes prices continuously. Buy YES shares and the price rises immediately. Sell before resolution if you change your mind. The odds you see reflect every trade that came before yours.

The ? button in the top corner opens a plain-English explainer covering both mechanisms, a side-by-side comparison, and the one insight that matters most: in parimutuel you’re competing against other players; in LMSR you’re trading against a formula.

Try running the same question under both mechanisms back to back. The difference in how the odds behave tells you everything.

[Open the simulator →]

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.

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