Sports bookies deal with “investors” that have net biases—lots of people will, for example, bet on the home team because they’re fans. I also have it on pretty good authority that people drastically underestimate the variance in soccer matches between closely matched teams; when the World Cup comes around, a simple strategy of “bet on the underdog in every match” makes money.
Sports bookies deal with “investors” that have net biases—lots of people will, for example, bet on the home team because they’re fans. I also have it on pretty good authority that people drastically underestimate the variance in soccer matches between closely matched teams; when the World Cup comes around, a simple strategy of “bet on the underdog in every match” makes money.