A large body of literature on the favorite-longshot bias finds that sports bettors in a variety of markets appear to … longshot bias is dominant, favorite bias has also now been found in a variety of sports betting markets. This review proposes … only two potential outcomes, where the favorite therefore has a probability >0.5 of happening, often produce favorite bias …

This paper examines whether the outcome bias harms price efficiency in betting exchange markets. In soccer, the match … overstated for previously lucky teams and understated for previously unlucky teams. Consistent with the outcome bias, the betting … community overestimates the importance of past match outcomes. Consequently, this bias translates into significantly negative …