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Efficiency of Racetrack Betting Markets
Top experts provide an outstanding collection of major academic findings on racetrack betting markets. Coverage includes psychological studies, utility preferences, economic and mathematical analysis, and examines betting strategies from win-place-show to exotics such as quinella and exacta.
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* Explores the academic and theoretical aspects of horse-racing and racetrack betting markets.
* Offers economic, financial, and psychological studies on gambling
* Includes mathematical and statistical models for probability estimations and wagering systems.
* Features an international analysis of risk behaviour and market efficiency on racetrack markets.
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* Explores the academic and theoretical aspects of horse-racing and racetrack betting markets.
* Offers economic, financial, and psychological studies on gambling
* Includes mathematical and statistical models for probability estimations and wagering systems.
* Features an international analysis of risk behaviour and market efficiency on racetrack markets.
648 pages, Hardcover
First published October 1, 1994
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Displaying 1 - 2 of 2 reviews
December 5, 2017
BETTERS UNDERBET FAVOURITES (<$5) AND OVERBET LONG SHOTS (>$20). IT GETS MORE EXTREME LATER IN THE MEET.
With a convex utility function it generates a well-known favourite-longshot bias where bettors underbet favourites (<$5) and overbet long shots (>$20).
There is less undercutting on feature races which face more coverage and scrutiny.
There is undercutting on the favourite AND longshots in the last race. Overbetting occurs on horses in the middle of the field.
After a series of wins by favourites the undercutting on favourites increases.
The average take in the US is 13%.
The biggest undercutting on the favourite occurs in the last race of the day.
There is a tendency for the amount wagered per person to increase slightly as the meet proceeds. The amount bet on race 7 is on average 1.8x the bet of race 1.
Bettors increase the amount wagered more after having lost than after a successful bet.
Betters refrain from making bets which wouldn't recoup their losses if successful - leads to betting outsiders more in later races.
Bettors are generally risk-lovers.
It can be estimated that about 20% of gamblers choose their horses randomly.
The returns of most wagering strategies improve when a side constraint eliminates wagers on long shots.
In horse racing there is risk and uncertainty, whereas in car games there is risk but no uncertainty as the probabilities are known ahead of time.
The general conclusion is that there exists a favourite-longshot bias but its not sufficiently strong to allow positive profits.
With a convex utility function it generates a well-known favourite-longshot bias where bettors underbet favourites (<$5) and overbet long shots (>$20).
There is less undercutting on feature races which face more coverage and scrutiny.
There is undercutting on the favourite AND longshots in the last race. Overbetting occurs on horses in the middle of the field.
After a series of wins by favourites the undercutting on favourites increases.
The average take in the US is 13%.
The biggest undercutting on the favourite occurs in the last race of the day.
There is a tendency for the amount wagered per person to increase slightly as the meet proceeds. The amount bet on race 7 is on average 1.8x the bet of race 1.
Bettors increase the amount wagered more after having lost than after a successful bet.
Betters refrain from making bets which wouldn't recoup their losses if successful - leads to betting outsiders more in later races.
Bettors are generally risk-lovers.
It can be estimated that about 20% of gamblers choose their horses randomly.
The returns of most wagering strategies improve when a side constraint eliminates wagers on long shots.
In horse racing there is risk and uncertainty, whereas in car games there is risk but no uncertainty as the probabilities are known ahead of time.
The general conclusion is that there exists a favourite-longshot bias but its not sufficiently strong to allow positive profits.
March 12, 2011
This book is a set of academic research papers on betting markets. A must read position for everyone, who really wants to grasp on researching betting markets.
Displaying 1 - 2 of 2 reviews