IDEAS home Printed from https://ideas.repec.org/a/taf/applec/44y2012i14p1813-1822.html
   My bibliography  Save this article

Efficiency and arbitrage across parimutuel wagering pools

Author

Listed:
  • Marshall Gramm
  • C. Nicholas McKinney
  • Douglas H. Owens

Abstract

Previous studies have found some degree of inefficiency in betting markets. However, it is difficult to implement a strategy to take advantage of these biases. This article investigates and attempts to arbitrage interrelated betting markets by undertaking three betting simulations using two datasets comprised of parimutuel pools from US horse races. Two of the betting simulations are positive returns, but in the most realistic real-time simulation the losses are substantial. Profitable betting opportunities disappear due to last minute wagers which change the odds and increase market efficiency.

Suggested Citation

  • Marshall Gramm & C. Nicholas McKinney & Douglas H. Owens, 2012. "Efficiency and arbitrage across parimutuel wagering pools," Applied Economics, Taylor & Francis Journals, vol. 44(14), pages 1813-1822, May.
  • Handle: RePEc:taf:applec:44:y:2012:i:14:p:1813-1822
    DOI: 10.1080/00036846.2011.554378
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2011.554378
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00036846.2011.554378?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Masahiro Ashiya, 2015. "Lock! Risk-Free Arbitrage in the Japanese Racetrack Betting Market," Journal of Sports Economics, , vol. 16(3), pages 322-330, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:44:y:2012:i:14:p:1813-1822. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.