Why is There a Favourite-Longshot Bias in British Racetrack Betting Markets
Bibliographic Data
| ID | 9719247 |
|---|---|
| Authors | Leighton Vaughan Williams (0000-0002-9639-9217, Nottingham Trent University), Douglas Paton (0000-0002-7486-9353, Nottingham Trent University), David Paton (0000-0003-1585-3076, Nottingham Trent University) |
| Year | 1997 |
| Volume | 107 |
| Issue | 440 |
| Pages | 150-158 |
| Publication date | 1997-01-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/1468-0297.00147 |
| OpenAlex | W1965492978 |
| Language | EN |
| Citations received | 12 |
| References cited | 7 |
In this paper we employ a large new data set to examine explanations of the tendency for favourites to be under-bet and longshots over-bet in recent British racetrack betting markets. We demonstrate that both demand and supply side factors can explain this favourite--longshot bias and propose new empirical tests to identify the influence of insider trading on the bias. The results suggest that the adverse selection problem faced by bookmakers, in the context of bettors who may possess superior information, is capable of explaining at least some of the observed bias
Adverse selection · Context (archaeology · Econometrics · Economics · Favourite · Financial economics · Geography · Insider · Insider trading · Microeconomics · Political science · Selection bias · Statistics · Consumer Market Behavior and Pricing · Finance · Gambling Behavior and Treatments · Mathematics · Sports Analytics and Performance
Complexity as a guide to understanding decision bias
Investigating the roots of the favourite-longshot bias
Optimal Price Setting in Fixed‐odds Betting Markets Under Information Uncertainty
Tests des modèles de décision en situation de risque
Explaining the Favorite–Long Shot Bias
The Growth of Gambling and Prediction Markets
Towards an Understanding of the Origins of the Favourite–Longshot Bias
Market Efficiency in Person‐to‐Person Betting
Revealing Weak‐Form Inefficiency in a Market for State Contingent Claims
An Examination of the Determinants of Biased Behaviour in a Market for State Contingent Claims
Do Prediction Markets Produce Well‐Calibrated Probability Forecasts
Why are Gambling Markets Organised so Differently from Financial Markets
Measuring the Incidence of Insider Trading
Some Evidence of Insider Knowledge in Horse Race Betting in Britain
On the Efficiency and Equity of Betting Markets
Prices of State Contingent Claims with Insider Traders, and the Favourite-Longshot Bias
Optimal Betting Odds Against Insider Traders
Measuring the Incidence of Insider Trading in a Market for State-Contingent Claims
Anomalies
| Unique citing works | 12 |
|---|---|
| Citations per year | 0,46 |
| Citation span | 2000 - 2018 (19) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 12 |