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

Andrew Weinbach and Rodney Paul

Journal of Gambling Business and Economics, 2008, vol. 2, issue 1, 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
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Citations: View citations in EconPapers (2)

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

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