Recreational Versus Professional Bettors: Performance Differences and Efficiency Implications

Bruce, Alistair and Johnson, Johnnie E. V. and Peirson, John D. (2012) Recreational Versus Professional Bettors: Performance Differences and Efficiency Implications. Economics Letters, 114 (2). pp. 172-174. ISSN 0165-1765. (doi:https://doi.org/10.1016/j.econlet.2011.10.014) (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)

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Official URL
http://dx.doi.org/10.1016/j.econlet.2011.10.014

Abstract

Using a novel dataset, which allows comparisons across heterogeneous sub-groups of pari-mutuel bettors, we demonstrate significant behaviour and performance distinctions between recreational and professional investors. Professionals’ ability to earn abnormal returns on short odds horses in high volume markets challenges the existing empirical consensus, which offers very limited evidence of betting market inefficiency. The results offer important lessons for betting operators and regulators and highlight the potential for similar avenues of investigation in other speculative markets.

Item Type: Article
Additional information: number of additional authors: 2;
Uncontrolled keywords: Betting; Horse racing; Efficient markets
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: 15 Apr 2016 12:01 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/40549 (The current URI for this page, for reference purposes)
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