Work

The Favourite‐Longshot Bias, Bookmaker Margins and Insider Trading in a Variety of Betting Markets

Year: 2003

Type: article

Abstract: This paper verifies the existence of the favourite‐longshot bias in a variety of sports betting markets where odds are set by bookmakers, but the precise pattern of the bias is not identical. Evidence is found to support a central prediction of the Shin (1993) model, which asserts that bookmakers are impelled to create a bias in their odds because of the presence of insider traders: that margins increase with the number of competitors.

Source: Bulletin of Economic Research

DOI: 10.1111/1467-8586.00174

Authors: Michael Cain, David Law, David Peel

Institutions: Bangor University, University of Salford, Aberystwyth University, University of Wales, Lancaster University

Language: English

Topic: Sports Analytics and Performance

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: bronze

OpenAlex ID: W1999172355

FWCI: 6.851

Cites: 19

Cited by: 75

Related to: 10