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michael_webster's avatar

Constant;

After the price for the bets are formed, it is possible to check the analysis of the model.

Prior to betting, to make money, you have to do a lot more than use the formula. You have to know what you are looking for at the tote board volume changes.

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Overcoming Bias Commenter's avatar

The "deep-pockets" isn't about acquiring the info, but about moving the market. Maybe small players have lots of info not in the market, and make money off of it, but if they don't move the market, they're not relevant to the price. So the price doesn't reflect that info (at least not very well), only the info available to big players.

People like to bridge the two worlds by saying that rational agents will become big players. But people have declining marginal utility with their own money and skewed preferences with other people's money.

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