Remember Me
Or use your Academic/Social account:


Or use your Academic/Social account:


You have just completed your registration at OpenAire.

Before you can login to the site, you will need to activate your account. An e-mail will be sent to you with the proper instructions.


Please note that this site is currently undergoing Beta testing.
Any new content you create is not guaranteed to be present to the final version of the site upon release.

Thank you for your patience,
OpenAire Dev Team.

Close This Message


Verify Password:
Verify E-mail:
*All Fields Are Required.
Please Verify You Are Human:
fbtwitterlinkedinvimeoflicker grey 14rssslideshare1
Smith, MA; Paton, D; Vaughan Williams, L (2006)
Languages: English
Types: Article
Established gambling operators have argued that person-to-person wagering on Internet ‘betting exchanges’ represents unfair competition. In this paper we suggest that, in fact, betting exchanges have brought about significant efficiency gains by lowering transaction costs for consumers. We test this hypothesis using matched data on UK horse racing from betting exchanges and from traditional betting media. In contrast to traditional betting media, we find that betting exchanges exhibit both weak and strong form market efficiency. Further, we find evidence that an information based model explains the well documented favourite-longshot bias more convincingly than traditional explanations based on risk preferences.
  • The results below are discovered through our pilot algorithms. Let us know how we are doing!

    • Cain, M., Law, D. and Peel, D. A. (2001a). The Relationship between two Indicators of Insider Trading in Racetrack Betting. Economica, 68, 97-104.
    • Cain, M., Law, D., and Peel, D.A. (2001b). The Incidence of Insider Trading in Betting Markets and the Gabriel and Marsden Anomaly. The Manchester School, 69 (2) 197- 207.
    • Cain, M., Law, D. and Peel, D.A. (2003). The Favourite-Longshot Bias, Bookmaker Margins and Insider Trading in a Variety of Betting Markets. Bulletin of Economic Research, 55, 263-73.
    • Hurley, W. and McDonough, L. (1995). A Note on the Hayek Hypothesis and the FavouriteLongshot Bias in Parimutuel Betting. American Economic Review, 85 (4), 949-955.
    • Law, D. and Peel, D.A (2002). Insider Trading, Herding Behaviour and Market Plungers in the British Horse-race Betting Market. Economica, 69, 327-338.
    • 0.1 0.2 0.3 0.4 Objective probability 0.5 0.6 0.7 0.1 0.2 0.3 0.4 Objective probability 0.5 0.6 0.7
  • No related research data.
  • No similar publications.

Share - Bookmark

Cite this article