Information and Efficiency: Goal Arrival in Soccer Betting

Karen Croxson and J Reade

Discussion Papers from Department of Economics, University of Birmingham

Abstract: In an efficient market news is incorporated into prices rapidly and completely. Attempts to test for this in financial markets have been undermined by the possibility of information leakage unobserved by the econometrician. An alternative is to switch to laboratory conditions, at the price of some artificiality. Potentially, sports betting markets offer a superior way forward: assets have terminal values and news can break remarkably cleanly, as when a goal is scored in soccer. We exploit this context to test for efficiency, applying a novel identification strategy to high-frequency data. On our evidence, prices update swiftly and fully.

Keywords: Information; market efficiency; gambling (search for similar items in EconPapers)
JEL-codes: C01 D0 G14 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2011-01
New Economics Papers: this item is included in nep-spo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

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Related works:
Journal Article: Information and Efficiency: Goal Arrival in Soccer Betting (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:bir:birmec:11-01

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