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Market calibration: News & Analysis

Coverage of "Market calibration" on Cryptosearcher: the stories and the context behind them.

Finance

Why Prediction Market Prices Don’t Always Reflect True Probabilities

Prediction market prices generally align with event probabilities but include consistent biases like the favorite-longshot effect and time-related capital costs. These factors mean market prices are useful approximations, not exact probabilities.

July 27, 2026

Why Prediction Market Prices Don’t Always Reflect True Probabilities