So a co-worker of mine who is interested in sports gambling asked me a very question (something I'm sure most of us don't really think about when looking for value from what the books put out on a daily basis). The question is, "what factors (ie. % probability for the favorite and underdog team to win, the previous meeting from the two teams, and etc) do bookmakers use on determining the appropriate price for an odd set out for the public. And also, if you were a bookmaker, what factors and probability you would use to determine the appropriate price for an odd? Thanks ahead.
