The ordinal efficiency of betting markets: an exploded logit approach

[journal article]

Johnson, Johnnie; Bruce, Alistair Cameron; Yu, Jiejun

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Please use the following Persistent Identifier (PID) to cite this document:http://nbn-resolving.de/urn:nbn:de:0168-ssoar-238910

Abstract	This paper offers a new perspective on efficiency in betting markets by examining the degree to which finishing order in horseraces corresponds to probabilities inherent in odds across different categories of horserace. The application of an exploded logit procedure reveals a significantly greater degree of ordinal efficiency in higher relative to lower class races. Explanations for the phenomenon include differences in prize-related incentives, cross-market distinctions in information markets and differential opportunity/incentive for market manipulation.
Keywords	information
Classification	Political Economy; Economic Sectors
Free Keywords	market efficiency; betting
Document language	English
Publication Year	2008
Page/Pages	p. 3703-3709
Journal	Applied Economics, 42 (2008) 29
DOI	http://dx.doi.org/10.1080/00036840802314622
Status	Postprint; peer reviewed
Licence	PEER Licence Agreement (applicable only to documents from PEER project)