Which makes the prediction market more accurate.
Not really, for the same reason entrapment isn't usually seen as an accurate way to gather information for law enforcement. See also Goodhart's law and overfitting.
Eh… sort of? In a sense, they become less accurate, because the prediction market is the causative event, not an independent observer.
Not really, for the same reason entrapment isn't usually seen as an accurate way to gather information for law enforcement. See also Goodhart's law and overfitting.