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Favorite-longshot bias

What is the favorite-longshot bias?

The favorite-longshot bias is a pattern, long documented in betting markets, in which long shots are priced too high and favourites too low relative to how often they win.

On Polymarket

In this site's Polymarket sample the opposite showed up in the lowest band: outcomes priced under 10% a week out happened more often than priced.

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Frequently asked questions

How does Favorite-longshot bias work on Polymarket?

In this site's Polymarket sample the opposite showed up in the lowest band: outcomes priced under 10% a week out happened more often than priced.

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