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How digitalization can shape markets

The case of sports betting

Datos Bibliográficos

ID9722189
AutoresJonas Vandenbruaene (0000-0001-5479-3219, University of Antwerp, autor de correspondencia), Jean Annaert (0000-0002-1680-3399, University of Antwerp and Antwerp Management School), Jan Annaert, Marc De Ceuster (University of Antwerp)
Año2025
Volumen92
Número366
Páginas644-673
Fecha de publicación2025-04-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEconomica (JOURNAL)
Identificadores de la revistaISSN: 0013-0427 • E-ISSN: 1468-0335
EditorialWiley (PUBLISHER • GB)
DOI10.1111/ecca.12570
OpenAlexW4406805702
IdiomaEN
Referencias citadas63

Digitalization has an impact on many vested businesses, decreasing marginal costs and increasing informed customers, among other things. However, measuring the impact of digitalization remains difficult. Betting markets provide a clean setting to estimate the price impact of digitalization, as products are homogeneous and it is easy to measure pricing behaviour. Consistent with mixed strategy models under imperfect information, we show that between 2000 and 2023, transaction costs for gamblers dropped by over 60%, although transaction‐cost dispersion persists. Furthermore, we also find that betting markets became more informationally efficient over this period, with a significant decrease in the favourite–longshot bias

Business · Economics · Consumer Market Behavior and Pricing · Gambling Behavior and Treatments · Sports Analytics and Performance

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