Anomalies
Parimutuel Betting Markets: Racetracks and Lotteries
Bibliographic Data
| ID | 4028895 |
|---|---|
| Authors | Richard H Thaler (0000-0001-7550-2855, Cornell University), William T Ziemba (University of British Columbia) |
| Year | 1988 |
| Volume | 2 |
| Issue | 2 |
| Pages | 161-174 |
| Publication date | 1988-05-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Journal of Economic Perspectives (JOURNAL) |
| Journal identifiers | ISSN: 0895-3309 • E-ISSN: 1944-7965 |
| Publisher | American Economic Association (PUBLISHER • US) |
| DOI | 10.1257/jep.2.2.161 |
| OpenAlex | W2084913862 |
| Language | EN |
| Citations received | 54 |
| References cited | 19 |
Economists have given great attention to stock markets in their efforts to test the concepts of market efficiency and rationality. Yet wagering markets are, in one key respect, better suited for testing market efficiency and rationality. The advantage of wagering markets is that each asset (bet) has a well-defined termination point at which its value becomes certain. The absence of this property is one of the factors that has made it so difficult to test for rationality in the stock market. Since a stock is infinitely lived, its value today depends both on the present value of future cash flows and on the price someone will pay for the security tomorrow. Indeed, one can argue that wagering markets have a better chance of being efficient because the conditions (quick, repeated feedback) are those which usually facilitate learning. However, empirical research has uncovered several interesting anomalies. While there are numerous types of wagering markets, legal and otherwise, this column will concentrate on racetrack betting and lotto-type lottery games
Cash · Economics · Efficient-market hypothesis · Financial economics · Lottery · Market efficiency · Microeconomics · Rationality · Stock market · Computer Science · Consumer Market Behavior and Pricing · Gambling Behavior and Treatments · Law · Sports Analytics and Performance · Finance
Understanding the climate responsibility associated with elections
A persistence paradox
On the Economics of State Lotteries
Can Asset Markets Be Manipulated? A Field Experiment With Racetrack Betting
The Effects of Risk Aversion on Wagering
Ambiguity and self-evaluation
How alike is it versus how likely is it
Prices of State Contingent Claims with Insider Traders, and the Favourite-Longshot Bias
Why is There a Favourite-Longshot Bias in British Racetrack Betting Markets
Optimal Betting Odds Against Insider Traders
The Economics Of Lotteries
Heuristics and Biases
The weighing of evidence and the determinants of confidence
Individual differences in reasoning
Clinical Versus Actuarial Judgment
Support theory
On the Shape of the Probability Weighting Function
Constructivist and Ecological Rationality in Economics
Representativeness Revisited
Developments in Non-Expected Utility Theory
Mental accounting matters
Representativeness in the Market for Bets on National Football League Games
A violation of dominance and the consumption value of gambling
Investigating the roots of the favourite-longshot bias
Are betting markets efficient? Evidence from European Football Championships
‘It’s so difficult that you have to be fully in control of your emotions, you have to be fully understanding of what you’re betting on’
Non-transitive patterns in sports match outcomes
Home advantage in professional soccer and betting market efficiency
Complexity as a guide to understanding decision bias
Are Longshots Only for Losers? A New Look at the Last Race Effect
Do Bettors Correctly Perceive Odds? Three Studies of How Bettors Interpret Betting Odds as Probabilistic Information
Ambiguity and Self-Evaluation
The Affect Heuristic
The glass beads of global war
Gambling Across Cultures
The ethics of parimutuel systems
Semiparametric (Distribution-Free) Testing of the Expectations Hypothesis in a Parimutuel Gambling Market
Esports Gambling
How Does Inside Information Affect Sports Betting Odds
Optimal Price Setting in Fixed‐odds Betting Markets Under Information Uncertainty
Explaining the Favorite–Long Shot Bias
On utility function estimation of racetrack bettors
Parimutuel betting on the eSports duels
Revealing Weak‐Form Inefficiency in a Market for State Contingent Claims
How digitalization can shape markets
An Examination of the Determinants of Biased Behaviour in a Market for State Contingent Claims
Do Prediction Markets Produce Well‐Calibrated Probability Forecasts
How Market Prices React to Information
Why are Gambling Markets Organised so Differently from Financial Markets
Should Social Scientists Care about Choice Anomalies
Decision Costs and Betting Market Efficiency
Historical Presidential Betting Markets
Prediction Markets
What Do Bettors Want? Determinants of Pari-Mutuel Betting Preference
Mental Accounting and Consumer Choice
Prospect Theory
Choices, values, and frames
Probability and Utility Estimates for Racetrack Bettors
Gambling and Rationality
The Utility Analysis of Choices Involving Risk
Utility Analysis and Group Behavior
Efficiency and Profitability in Exotic Bets
The illusion of control
| Unique citing works | 54 |
|---|---|
| Citations per year | 1,46 |
| Citation span | 1989 - 2026 (38) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 44 |