Not every idea submitted in Idea Market is worth implementing. Some ideas need improvement because they lack feasibility while others simply don’t have the potential or scope to succeed. Accordingly some ideas should be appraised negatively so that their true value is reflected.
In Idea Market participants can do exactly this. Should an idea unfit for implementation be submitted users may invest in the opposite direction. This extremely important feature enhances market efficiency through uncovering hidden knowledge while reducing hierarchical analysis costs by filtering out ideas that are low quality or need improvement.
This concept is not unlike short-selling in financial markets. If an investor believes that a specific asset is overvalued he may short it at the present market price, buying it at a lower price in the future and therefore making money – winning credits in Idea Market – when the price decreases.
It’s worth noting that there is a degree of risk when investing in ideas on the Exago platform. This was specifically implemented so that participants assess carefully and only invest in the best ideas. By constraining their money supply the participant is discouraged to invest randomly as doing so would generate continually upward-moving ideas and therefore risk-free profits by buying up every new idea on the market.