https://astralcodexten.substack.com/p/use-prediction-markets-to-fund-investigative

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Hindenburg Research has a great business model:

1. Investigate companies 2. ...until they find one that is committing fraud 3. Short the fraudulent company 4. Publicly reveal the fraud 5. Company's stock goes down 6. Profit!

I've been thinking about them recently because of the debate around funding investigative reporting. It goes something like: investigative reporting is a public good. Everyone benefits from knowing about Watergate. But it's hard for investigative reporters to capture the value they produce. Very few of the people who cared about Watergate bought subscriptions to the Washington Post. There's no reason to - you can let the Washington Post uncover Watergate at no cost to you, then hear about it for free on the nightly news. The traditional solution is bundled media. Newspapers have their profitable bread-and-butter in the form of easy things like commentary and sports, then do some unprofitable investigative reporting on the side to gain prestige.