Library/The Yes Bias Might Not Exist
MicrostructureAnalysis

The Yes Bias Might Not Exist

functionSPACE·March 27, 2026·Twitter
Traders buy the cheaper token, not the one labeled yes

Why It's Worth Reading

Analyzes 7,292 resolved Polymarket markets and 28,793 on-chain trades to test whether yes bias exists in trade data. Finds that traders buy whichever token is cheaper, not whichever is labeled YES, and that the apparent bias is a compound effect of longshot preference channeled through Polymarket's "Will X happen?" question framing, which systematically assigns the longshot to the YES token.

Some technical background helpful

Concepts

Platforms mentioned: Polymarket

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