ON THE EFFICIENCY OF THE MARKET FOR DOUBLE (QUINELLA) BETS AT A FINNISH RACETRACK

Antti Kanto and Gunnar Rosenqvist
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Antti Kanto: Helsinki School of Economics, Helsinki, Finland

Chapter 48 in Efficiency of Racetrack Betting Markets, 2008, pp 485-498 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractThis paper proposes a system for double betting at a racetrack, The proposed method utilizes Harville's (1973) formulas to reduce the $\big(\begin{array}{cc}k\\ 2 \end{array}\big)$ -dimensional space of empirical odds for double Bets to a (k−1)-dimensional space (k is the number of horses in a race). A novel feature of our betting system, compared with earlier work e.g. by Ziemba and Hausch, is that win market efficiency is not assumed since it is not supported by the Finnish data. The Kelly criterion is utilized for determining die amount of money to be wagered on each bet. The system is tested on data from 111 races at a Finnish racetrack and found to produce positive profits.

Keywords: Racetrack Efficiency; Racetrack Betting Market; Racetrack Betting; Win Market; Finance (search for similar items in EconPapers)
Date: 2008
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