How Bookies Can Outwit Smart Bettors

Birge, Feng, Keskin, and Schultz imagine a bettor who knows more than the bookie. The betting market is a prime source of information for the Bookies. If everybody wants to bet on the Bulls, theBookies take note and factors that into the calculation of the spread. Bookie will never bet with a smart better on terms that allow him to win. If the bettors' knowledge of outcomes is not accurate, then the market maker is left with only the commission. Inertial policies are based on difference between positive and negative bets. They are the difference of how many bets have been made in favor of a particular event and how the number of bets against it.