It basically comes down to liquidity and where the sharp money goes. There are a couple of very large betting syndicates in this world.
A couple of famous ones are Tony Bloom, the owner of Brighton Football Club. His syndicate is called Starlizard.
He employs hundreds of analysts who analyse thousands of games coming up with their own models.
What they do next is look at the odds or the prices that are being offered in the market and they look for deviations from their own models.
If they find something that they believe to be undervalued, they will place a bet on that outcome.
Where do these guys place their bets? Well, they can't place it on the soft books because the limits are just way too low and hence they would not be able to get a high enough turnover.
As a result of that, they would not be able to get enough profit either, so they have to go to the sharper markets because the sharper bookmakers don't limit winning players.
Also, they offer way higher betting limits, so that's how they attract sharp traders and syndicates.
If a bet comes in on one side, the house will drop on that outcome and then it will go on the other side.
Eventually, someone else might say that now the other team is the one that's underpriced, so they'll place the bet on a lower level, so they think it’s fair.
Then, the odds on the home team go up again and eventually the market will reach an equilibrium where everyone is happy about the price at that point.
So one could say that the market is efficient, similar to how it is in the stock market.
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