Some Evidence of Insider Knowledge in Horse Race Betting in Britain

Dados Bibliográficos

ID9725692
AutoresN F R Crafts, Nicholas Crafts (0000-0002-1885-6240, autor correspondente)
Ano1985
Volume52
Fascículo207
Páginas295
Data de publicação1985-08-01
Peer ReviewedSim
Open AccessNão
TipoARTICLE
PeriódicoEconomica (JOURNAL)
Identificadores do periódicoISSN: 0013-0427 • E-ISSN: 1468-0335
EditoraJSTOR (PUBLISHER)
DOI10.2307/2553853
OpenAlexW2041379761
IdiomaEN
Citações recebidas12
Referências citadas2

In recent paper, Dowie (1976) investigated equity of market for betting on horse races in Britain. He concluded that market was not strongly inefficient in sense that there was no evidence of subset of investors possessing superior information to that generally available to public; in Dowie's own words, his position is that the 'outsider' has access to as good information as 'insider' (p. 150) and that his results are a genuine challenge to conventional wisdom that betting markets are strongly inefficient (p. 150). The purpose of this note is to suggest that Dowie's methodology is not an appropriate way to test hypothesis of strong inefficiency and to argue that redesigned test of same data sources used by Dowie gives evidence consistent with there being substantial opportunities for profitable insider trading. The new test and its results are presented in Section II. In Section III some implications of evidence are noted

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