Advanced Search
MyIDEAS: Login

Information and efficiency: an empirical study of a fixed odds betting market

Contents:

Author Info

  • Tim Kuypers
Registered author(s):

    Abstract

    The efficiency of the fixed odds betting market for football in England is investigated. It is the efficiency of how market participants utilize available information that is tested. A model of bookmaker behaviour is presented in which the bookmaker maximizes their expected share of the total amount bet. It is found that an expected profit maximizing bookmaker could set market inefficient odds. Several empirical tests using the ordered probit model with data on prices and publicly available information are carried out. Evidence of market inefficiency is identified offering profitable betting opportunities.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151449
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 32 (2000)
    Issue (Month): 11 ()
    Pages: 1353-1363

    as in new window
    Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1353-1363

    Contact details of provider:
    Web page: http://www.tandfonline.com/RAEC20

    Order Information:
    Web: http://www.tandfonline.com/pricing/journal/RAEC20

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

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

    Cited by:
    1. Herman O. Stekler & David Sendor & Richard Verlander, 2009. "Issues in Sports Forecasting," Working Papers 2009-002, The George Washington University, Department of Economics, Research Program on Forecasting.
    2. Steven D. Levitt, 2003. "How Do Markets Function? An Empirical Analysis of Gambling on the National Football League," NBER Working Papers 9422, National Bureau of Economic Research, Inc.
    3. Audas, Rick & Dobson, Stephen & Goddard, John, 2002. "The impact of managerial change on team performance in professional sports," Journal of Economics and Business, Elsevier, vol. 54(6), pages 633-650.
    4. Agnes Bäker & Mario Mechtel & Karin Vetter, 2012. "Beating thy Neighbor: Derby Effects in German Professional Soccer," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 232(3), pages 224-246, May.
    5. Palomino, F.A. & Renneboog, L.D.R. & Zhang, C., 2008. "Information Salience, Investor Sentiment, and Stock Returns: The Case of British Soccer Betting," Discussion Paper 2008-99, Tilburg University, Center for Economic Research.
    6. Sebastian Braun & Michael Kvasnicka, 2008. "Against All Odds? – National Sentiment and Wagering on European Football," Ruhr Economic Papers 0042, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    7. Lahvicka, Jiri, 2013. "The Fibonacci Strategy Revisited: Can You Really Make Money by Betting on Soccer Draws?," MPRA Paper 47649, University Library of Munich, Germany.
    8. Jakobsson, Robin & Karlsson, Niklas, 2007. "Testing Market Efficiency in a Fixed Odds Betting Market," Working Papers 2007:12, Örebro University, School of Business.
    9. Marshall, Ben R., 2009. "How quickly is temporary market inefficiency removed?," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(3), pages 917-930, August.
    10. Goddard, John, 2005. "Regression models for forecasting goals and match results in association football," International Journal of Forecasting, Elsevier, vol. 21(2), pages 331-340.
    11. Palomino, F.A. & Renneboog, L.D.R. & Zhang, C., 2005. "Stock Price Reactions to Short-Lived Public Information: The Case of Betting Odds," Discussion Paper 2005-016, Tilburg University, Tilburg Law and Economic Center.
    12. Igan, Deniz & Pinheiro, Marcelo & Smith, John, 2012. "Racial biases and market outcomes: "White men can't jump," but would you bet on it?," MPRA Paper 36069, University Library of Munich, Germany.
    13. Hvattum, Lars Magnus & Arntzen, Halvard, 2010. "Using ELO ratings for match result prediction in association football," International Journal of Forecasting, Elsevier, vol. 26(3), pages 460-470, July.
    14. Maschke, Mario & Schmidt, Ulrich, 2010. "Das Wettmonopol in Deutschland: Status Quo und Reformansätze," Open Access Publications from Kiel Institute for the World Economy 32848, Kiel Institute for the World Economy (IfW).
    15. Raphael Flepp & Stephan Nüesch & Egon Franck, 2013. " Liquidity, Market Efficiency and the Influence of Noise Traders: Quasi-Experimental Evidence from the Betting Industry," Working Papers 341, University of Zurich, Department of Business Administration (IBW).

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1353-1363. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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