Semi-strong form efficiency in the horserace betting market
Semi-strong form efficiency in the horserace betting market
This paper reviews the literature addressing the degree to which abnormal returns can be earned in horse race betting markets using publicly available information, other than odds alone. Consequently, the chapter examiners the extent to which horse race betting markets are semi-strong form efficient. The conclusion to emerge is that horse race betting markets incorporate a significant amount of publicly available information. Bettors appear good at discounting simple, single variable information. However, they do not efficiently discount more complex information. Studies that examine the simultaneous effect of several variables on race outcome demonstrate that bettors often do not react to the subtle relationships that exist between variables.
0444507442
275-306
Sung, Ming-Chien
2114f823-bc7f-4306-a775-67aee413aa03
Johnson, Johnnie
6d9f1a51-38a8-4011-a792-bfc82040fac4
September 2008
Sung, Ming-Chien
2114f823-bc7f-4306-a775-67aee413aa03
Johnson, Johnnie
6d9f1a51-38a8-4011-a792-bfc82040fac4
Sung, Ming-Chien and Johnson, Johnnie
(2008)
Semi-strong form efficiency in the horserace betting market.
In,
Constantinides, G., Markowitz, H.M., Merton, R.C., Myers, S.C., Samuelson, P.A., Sharpe, W.F., Arrow, Kenneth, Hausch, Donald and Ziemba, W.T.
(eds.)
Handbook of Sports and Lottery Markets.
(Handbooks in Finance)
Amsterdam, NL.
Elsevier, .
Record type:
Book Section
Abstract
This paper reviews the literature addressing the degree to which abnormal returns can be earned in horse race betting markets using publicly available information, other than odds alone. Consequently, the chapter examiners the extent to which horse race betting markets are semi-strong form efficient. The conclusion to emerge is that horse race betting markets incorporate a significant amount of publicly available information. Bettors appear good at discounting simple, single variable information. However, they do not efficiently discount more complex information. Studies that examine the simultaneous effect of several variables on race outcome demonstrate that bettors often do not react to the subtle relationships that exist between variables.
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Published date: September 2008
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Local EPrints ID: 51340
URI: http://eprints.soton.ac.uk/id/eprint/51340
ISBN: 0444507442
PURE UUID: 2fa01737-1807-4317-801c-b2bae79d2fd8
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Date deposited: 18 Jun 2008
Last modified: 05 Jan 2024 02:40
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Contributors
Author:
Johnnie Johnson
Editor:
G. Constantinides
Editor:
H.M. Markowitz
Editor:
R.C. Merton
Editor:
S.C. Myers
Editor:
P.A. Samuelson
Editor:
W.F. Sharpe
Editor:
Kenneth Arrow
Editor:
Donald Hausch
Editor:
W.T. Ziemba
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