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AI Insights:
03.12 09:33 UpdatedFair Value Reasoning:
The NY-18 district exhibits overwhelming Democratic strength for the 2026 midterms. First, incumbent Democrat Pat Ryan secured reelection in 2024 with a massive ~14-point margin, demonstrating solid local support. Second, the political environment—a midterm election under a Republican presidency (Trump)—historically favors the opposition party (Democrats) heavily. Third, authoritative ratings like the Cook Political Report classify this seat as 'Solid Democrat.' The current market price (83 cents) suffers from illiquidity and fails to fully reflect these near-certain fundamental advantages.
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Divergence
Significant divergence exists. Mainstream political analysis (e.g., Cook Political Report) rates this seat as 'Solid Democrat,' implying a Democratic win probability of over 95% or near 100% (given Ryan's previous landslide). However, the prediction market currently prices the win probability at only ~83% (or ~89% normalized), with a clear arbitrage discount. This is not a true informational divergence but rather a mispricing driven by a lack of market liquidity.