Toward an Explanation of the Favourite-Longshot Bias: A Decision-Making Perspective

B. Alistair, Johnson and J.E.V.

Working Papers from University of Southampton - Department of Accounting and Management Science

Abstract: This paper seeks to offer new insights into the behavioral origins of the 'favourite-longshot' bias- an established feature of betting markets, whereby longshots win less often than the subjective probabilities imply and favourites more often. This study analyses a new data source which offers detailed information for a large sample of recent UK horseraces on decision-making behavior within the parimutuel and the parallel bookmaker-based betting markets.

Keywords: BEHAVIOUR; DECISION MAKING; GAMBLING (search for similar items in EconPapers)
JEL-codes: D60 D81 (search for similar items in EconPapers)
Pages: 40 pages
Date: 1999
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Citations: View citations in EconPapers (1)

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