Expert Analysis and Insider Information in Horse Race Betting: Regulating Informed Market Behavior.
We present a new model analyzing the effect of uncertainty faced by bookmakers. It is shown that bettors with inside information or expert analysis decrease the odds set by profit-maximizing bookmakers. Data on previously unraced 2-year-old horses and those that have raced previously are used to exa...
| Publicado en: | Southern Economic Journal Vol. 76; no. 4; pp. 976 - 993 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Apr2010
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=50137309&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 50137309 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Apr2010 vid: 76 iid: 4 pid: 480 pub: Wiley-Blackwell artinfo: ui: 50137309 10.4284/sej.2010.76.4.976 ppf: 976 ppct: 17 formats: fmt: @attributes: type: P size: 1.1MB tig: atl: Expert Analysis and Insider Information in Horse Race Betting: Regulating Informed Market Behavior. aug: au: Peirson, John Smith, Michael A. affil: Department of Economics, Keynes College, University of Kent, Canterbury, Kent CT2 7NP, UK Leeds Business School, Bronte Building, Leeds Metropolitan University, Leeds LS1 3HE, UK su: Bookmakers (Gambling) Horse race betting Book-making (Betting) Race horses Insider trading in securities Profit maximization sug: subj: Other Gambling Industries All other gambling industries Horse race tracks Bookmakers (Gambling) Horse race betting Book-making (Betting) Race horses Insider trading in securities Profit maximization ab: We present a new model analyzing the effect of uncertainty faced by bookmakers. It is shown that bettors with inside information or expert analysis decrease the odds set by profit-maximizing bookmakers. Data on previously unraced 2-year-old horses and those that have raced previously are used to examine the impact of the greater possibility of insider information on odds bias in relation to unraced horses. The probability of an unraced 2-year-old winning is found to be on average 16% higher than that of a raced 2-year-old horse with the same odds. This effect decreases as the probability of winning increases. The latter effect indicates a possible contribution to the favorite-longshot bias, and the former shows the importance of insider information in the setting of market odds. The regulation of the use of insider information is discussed in light of the similar impact of insider information and expert analysis on bookmaker odds. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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