Skip to main content

An Examination of the Determinants of Biased Behaviour in a Market for State Contingent Claims

Bruce, Alistair, Johnson, Johnnie E. V., Peirson, John D., Yu, Jiejun (2009) An Examination of the Determinants of Biased Behaviour in a Market for State Contingent Claims. Economica, 76 (302). pp. 282-303. ISSN 1468-0335. (doi:10.1111/j.1468-0335.2008.00741.x) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:40547)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
http://dx.doi.org/10.1111/j.1468-0335.2008.00741.x

Abstract

We develop a model to explain the differential incidence of the favourite–longshot bias in parallel sectors of the pari-mutuel horserace betting market. Hypotheses are derived from the model and these are tested, using UK data, to explore the origins of the bias. Significant variations in the bias are discovered between market sectors on- and off-racetrack. These results shed light on competing demand-side explanations for the favourite–longshot bias and suggest that it is affected by a combination of behavioural and operational features of the markets and the types of bettors (informed and leisure) which they attract.

Item Type: Article
DOI/Identification number: 10.1111/j.1468-0335.2008.00741.x
Additional information: number of additional authors: 3;
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Stewart Brownrigg
Date Deposited: 07 Mar 2014 00:05 UTC
Last Modified: 29 May 2019 12:26 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/40547 (The current URI for this page, for reference purposes)
  • Depositors only (login required):