Episode 39: Jeff Yass - Founder and Managing Director of Susquehanna International Group

In this episode of Generating Alpha, host Amir welcomes Jeff Yass, the founder of Susquehanna International Group, to discuss prediction markets. Yass expresses his passion for prediction markets, emphasizing their value in providing accurate probabilities for informed decision-making. He envisions prediction markets evolving to offer fairer systems with reduced costs, particularly in sports betting, and highlights their potential to promote truth and challenge political misinformation. Yass also addresses concerns about market manipulation, suggesting that the cost of manipulation would be prohibitively high. He draws parallels between gambling and prediction markets, emphasizing the systemic risk of misinformation and how prediction markets can serve as an antidote. The conversation further explores how firms can incorporate prediction markets into their decision-making processes, using examples such as elections and real estate development. Yass also touches on the potential for prediction markets to influence the insurance business and sees opportunities for individuals with expertise to profit from creating their own markets. He concludes by advising students to study probability and statistics and encourages listeners to use prediction markets to test their knowledge and contribute to price accuracy.