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by vasaulys 3049 days ago
I'm not sure that's true.

Andrew Gelman once mentioned that Black Swan events are actually routinely _overpriced_ via the Longshot Bias. [1] He had talked about this in the context of the recent Leicester FC win and the odds on that team. [2]

[1] https://en.wikipedia.org/wiki/Favourite-longshot_bias

[2] http://andrewgelman.com/2016/06/02/30183/

1 comments

Glass half full/Glass half empy. A bet against the opposite of an overpriced event will be underpriced.