The Link Between Information and the Favorite-longshot Bias in Pari-mutuel Wagering Markets

Andrew Weinbach () and Rodney Joseph Paul ()

Journal of Gambling Business and Economics, 2008, vol. 2, issue 1, pages 30-44

Abstract: This paper examines a database of more than 45,000 greyhound races over an eight year period at Dairyland Greyhound Park to test for and examine the nature of the favorite-longshot bias. While the longest odds dogs are collectively found to be over-bet for the sample as a whole, the bias is found to diminish after the introduction of Off-Track Betting. Further, maiden races, among inexperienced dogs, are shown to exhibit the traditional favorite-longshot bias, while non-maiden races do not. These results may help explain why researchers have found the bias at some tracks, but not others.

Keywords: FAVORITE-LONGSHOT BIAS; MARKET RESTRICTIONS; WAGERING MARKETS (search for similar items in EconPapers)
JEL-codes: L83 (search for similar items in EconPapers)
Date: 2008

Downloads: (external link)
http://www.ingentaconnect.com/content/ubpl/jgbe/2008/00000002/00000001/art00002 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:buc:jgbeco:v:2:y:2008:i:1:p:30-44

Ordering information: This journal article can be ordered from
http://www.jgbe.com/index_files/Page492.htm

Access Statistics for this article

Journal of Gambling Business and Economics is edited by Nottingham Business School Leighton Vaughan Williams

More articles in Journal of Gambling Business and Economics from University of Buckingham Press
Series data maintained by Victor Matheson, College of the Holy Cross ().