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The Link Between Information and the Favorite-longshot Bias in Pari-mutuel Wagering Markets

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Author Info
Andrew P. Weinbach
Rodney J. Paul

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Abstract

This paper examines a database of more than 45,000 greyhound races over an eight year period at Dairyland Greyhound Park to test for and examine the nature of the favorite-longshot bias. While the longest odds dogs are collectively found to be over-bet for the sample as a whole, the bias is found to diminish after the introduction of Off-Track Betting. Further, maiden races, among inexperienced dogs, are shown to exhibit the traditional favorite-longshot bias, while non-maiden races do not. These results may help explain why researchers have found the bias at some tracks, but not others.

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Publisher Info
Article provided by University of Buckingham Press in its journal Journal of Gambling Business and Economics.

Volume (Year): 2 (2008)
Issue (Month): 1 (May)
Pages: 30-44
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Handle: RePEc:buc:jgbeco:v:2:y:2008:i:1:p:30-44

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Related research
Keywords: FAVORITE-LONGSHOT BIAS; MARKET RESTRICTIONS; WAGERING MARKETS;

Find related papers by JEL classification:
L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism

Statistics
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This page was last updated on 2009-12-9.


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