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futarchy

n. a form of government proposed by economist Robin Hanson, in which elected officials define measures of national welfare and prediction markets are used to determine which policies will have the most positive effect

Wikipedia
Futarchy

Futarchy is a form of government proposed by economist Robin Hanson, in which elected officials define measures of national welfare, and prediction markets are used to determine which policies will have the most positive effect.

It was named by the New York Times as a buzzword of 2008.