Sometimes, we prefer to ignore information. It could be anything like the information about an imminent cyclone or how much space we have already used in our mobile phones. All these pieces of information are important. Ignoring important information is a kind of behavioral pattern that psychiatrists have named “Ostrich Effect”. How is this effect related to IPL betting? Keep on reading to know the details.
The Origin of Ostrich Effect
Ostrich is a type of bird that hides itself from predators by burying its heads in the sand instead of running away.. However, this is a myth though ostriches lie on the ground and play dead sometimes so that they are not noticed.
Ostriches lower their heads while feeding and most probably, the myth was born out of it. Ostriches prefer to run away to save themselves from predators.
Despite the fact there is no truth in the “Ostrich Effect”, it is used as a metaphor for people who purposely avoid important information that might push them towards uncomfortable zones.
The term “Ostrich Effect” was coined by two professors Dam Galai and Orly Sade in 2006. They used the term about the investors who avoided putting money in risky investment options by simply pretending that they didn’t exist.
How to Explain the “Ostrich Effect”?
Safe and Galai studied the phenomenon to explain the reasons. They controlled several factors including broker’s fees, taxes, withdrawal penalties etc and discovered that it was only the “Ostrich Effect” that forced people to consider that liquid bonds were more valuable than illiquid options.
During any financial crisis, investors usually pay a premium to hold assets that they do have little or no control over. Liquid bonds are susceptible to fluctuations in value almost every day whereas illiquid bonds are more stable, at least for one year. Investors showed preference for the illiquid bonds to have some peace of mind so that they don’t have to constantly worry about heavy financial penalties. .
Investors avoided risks by pretending not to be aware of the existence of liquid bonds. They developed an illusion of security and imagined no other options existed for investment. Sade and Galai found out that when confronted with uncertainties, investors always opted for financial instruments where risks were not reported versus where risks were well-known and discussed every day.
Ostrich Effect in Sports Betting
The phenomenal “Ostrich Effect” is not limited to only finance and investment. This behavioral pattern is evident in daily lives and many fields including sports betting.
Think about Satta Matka and you will find how some bettors exhibit the “Ostrich Effect”. A bettor is willing to make a bet on an IPL match. He talks to one of his friends and chooses a different sportsbook that offers a sharper line and ignores the one he uses. He does not create a new account and chase the line offering a better value; instead, he chooses to avoid information that can seriously help him. .
Another classic example of the Ostrich Effect in cricket betting is when a punter prefers not to hedge a bet. Imagine, the bettor places an early wager against the spread and finds out the last-minute lineup changes. The bettor hopes that everything will be fine regardless of his not hedging the bet. Needless to say, this is not a wise move, irrespective of the circumstances.
How Does the Ostrich Effect Impact Sports Betting?
It’s interesting to note that sports betting and the share market share many similarities and differences as well. In cricket betting, bettors often prefer to shield themselves from the kind of information that is important and relevant but won’t make them uncomfortable or at least, does not support their preconceptions.
Cricket bettors should struggle to have the most important information and latest updates, in regards to their betting strategies and the options that they place bets on.
How to Avoid the Ostrich Effect?
It is easy to avoid the negative effects of the ostrich effect. Gather all the information you can. It is not always easy to become a sharp bettor. Most importantly, you need to undergo uncomfortable processes for the purpose.
A bettor should have a clear view of any important factors in cricket betting at the expense of encountering an uncomfortable situation.
A bettor should not bury his head in the proverbial sand to avoid looking at the uncomfortable but useful updates. One must keep a watch on the information flow and adjust his odds accordingly. This is more important when betting on live matches.
The odds on IPL betting apps may keep changing every moment. As a bettor, you should not ignore the new information even if it confronts your bias. In betting, there is no scope for sitting idle and satisfied. This way, you will only miss valuable information that can favor your luck. Learn to land in uncomfortable zones; this may bring you good luck later. Remember all is well that ends well.