IDEAS home Printed from https://ideas.repec.org/h/wsi/wschap/9789812819192_0029.html
   My bibliography  Save this book chapter

Subjective Information and Market Efficiency in a Betting Market

In: Efficiency Of Racetrack Betting Markets

Author

Listed:
  • Stephen Figlewski

    (New York Uniuersity Graduate School of Business Administration, USA)

Abstract

Much of the information available to participants in speculative markets is in the nature of expert opinion, analysis, professional advice, and so on. Markets discount widely held factual information very well; this paper studies market efficiency with respect to subjective information. We examine the “market” for bets on thoroughbred horse races to determine whether the published forecasts of professional handicappers are completely discounted. A multinomial logit probability model is used to measure the information content of the forecasts, and we find that they do contain considerable information but that the track odds generated by betting discount almost all of it. Within the population of bettors, those betting at the track appear to discount the handicapper information fully, but those betting through New York's off-track betting system do not.

Suggested Citation

  • Stephen Figlewski, 2008. "Subjective Information and Market Efficiency in a Betting Market," World Scientific Book Chapters, in: Donald B Hausch & Victor SY Lo & William T Ziemba (ed.), Efficiency Of Racetrack Betting Markets, chapter 29, pages 285-298, World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789812819192_0029
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/pdf/10.1142/9789812819192_0029
    Download Restriction: Ebook Access is available upon purchase.

    File URL: https://www.worldscientific.com/doi/abs/10.1142/9789812819192_0029
    Download Restriction: Ebook Access is available upon purchase.
    ---><---

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

    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:wsi:wschap:9789812819192_0029. 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscientific.com/page/worldscibooks .

    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.