NCAA Betting Scandal • Prediction Market Truth • Parlay Myths

Added: 2026-05-08

Prediction markets and sportsbooks operate as zero-sum ecosystems where the platform profits from fees while requiring some participants to lose for the system to function; despite structural differences, both require bettors to overcome fundamental cognitive biases like the conjunction fallacy, which causes people to incorrectly believe that combining multiple likely events (like chalk moneyline parlays) creates positive expected value when in reality, the human brain evolved for survival, not abstract probabilistic thinking, making it difficult to correctly assess layered probabilities.