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Parimutuel betting markets: racetracks and lotteries revisited

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  • Ziemba, William

Abstract

This paper surveys the state of the art in research in racetrack and lottery markets. Market efficiency and the pricing of various wagers is studied along with new developments since the Thaler and Ziemba JEP review. Other sports betting markets are also discussed. The role of syndicates, betting exchange rebates, behavioral biases and fundamental information is discussed.

Suggested Citation

  • Ziemba, William, 2020. "Parimutuel betting markets: racetracks and lotteries revisited," LSE Research Online Documents on Economics 118873, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:118873
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    File URL: http://eprints.lse.ac.uk/118873/
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    1. Ramirez, Philip & Reade, J. James & Singleton, Carl, 2023. "Betting on a buzz: Mispricing and inefficiency in online sportsbooks," International Journal of Forecasting, Elsevier, vol. 39(3), pages 1413-1423.

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    More about this item

    Keywords

    parimutuel betting markets; eciency of racetrack betting markets; lottery strategies; favorite-longshot bias;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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