The art of pricing uncertainty
Level ∞ - BILL BETTOR
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Today we’ll have a look at a concept we’ve made a lot of money from during our time in the betting markets, namely how uncertainty/variance in a horse’s performance [this thinking can be translated to *any* game/market] affects its probabilities in different markets [win, place, show, H2H etc.].
It’s a beautiful example of how the amount of uncertainty acts as one of the fundamental pieces of the pricing process.
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