An examination of the determinants of biased behaviour in a market for state contingent claims


Bruce, Alistair C., Johnson, Johnnie E.V. and Yu, Jiejun (2007) An examination of the determinants of biased behaviour in a market for state contingent claims. In, The Growth of Gambling and Prediction Markets: Economic and Financial Implications, Palm Desert, USA, 20 - 22 May 2007. 31pp.

Download

Full text not available from this repository.

Description/Abstract

This paper examines the differential incidence of the favourite-longshot bias in
parallel sectors of the pari-mutuel horserace betting market in order to explore the
origins of the bias. Significant variations in the bias are discovered between market
sectors at the racetrack where the race takes place, at tracks remote from the race and
in off-track betting offices. These results shed light on the competing demand-side
explanations for the favourite-longshot bias and suggest that a combination of
behavioural and operational features of the markets and the types of bettors which
they attract have a strong impact on the bias

Item Type: Conference or Workshop Item (Paper)
Related URLs:
Keywords: market efficiency, favourite-longshot bias, betting markets
Subjects: G Geography. Anthropology. Recreation > GV Recreation Leisure
H Social Sciences > HG Finance
Divisions: University Structure - Pre August 2011 > School of Management
ePrint ID: 47202
Date Deposited: 03 Aug 2007
Last Modified: 27 Mar 2014 18:31
URI: http://eprints.soton.ac.uk/id/eprint/47202

Actions (login required)

View Item View Item