IDEAS home Printed from https://ideas.repec.org/a/fep/journl/v24y2011i1p55-63.html
   My bibliography  Save this article

Market Efficiency in Finnish Harness Horse Racing

Author

Listed:
  • Niko Suhonen

    () (University of Eastern Finland, Department of Social Science and Business Studies)

Abstract

This paper analyzes the efficiency of betting markets in harness horse racing during the transition from on-track betting to Internet gambling. In order to test the market efficiency hypotheses, an alternative testing approach to other grouping methods is introduced. The betting market efficiency is tested by using a database accumulated from the Finnish harness horse racing. The results imply that the markets are weakly efficient but characterised by the favourite-longshot bias. However, convincing evidence for other gambling market anomalies such as the end of the day effect or the gambler’s fallacy is not found.

Suggested Citation

  • Niko Suhonen, 2011. "Market Efficiency in Finnish Harness Horse Racing," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 55-63, Spring.
  • Handle: RePEc:fep:journl:v:24:y:2011:i:1:p:55-63
    as

    Download full text from publisher

    File URL: http://taloustieteellinenyhdistys.fi/images/stories/fep/fep12011/fep12011_suhonen.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Erik Snowberg & Justin Wolfers, 2010. "Explaining the Favorite-Long Shot Bias: Is it Risk-Love or Misperceptions?," Journal of Political Economy, University of Chicago Press, vol. 118(4), pages 723-746, August.
    2. Kanto, Antti J. & Rosenqvist, Gunnar & Suvas, Arto, 1992. "On utility function estimation of racetrack bettors," Journal of Economic Psychology, Elsevier, vol. 13(3), pages 491-498, September.
    3. Leighton Vaughan Williams & David Paton, 1998. "Why are some favourite-longshot biases positive and others negative?," Applied Economics, Taylor & Francis Journals, vol. 30(11), pages 1505-1510.
    4. Raymond D. Sauer, 1998. "The Economics of Wagering Markets," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 2021-2064, December.
    Full references (including those not matched with items on IDEAS)

    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:fep:journl:v:24:y:2011:i:1:p:55-63. 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: (Editorial Secretary). General contact details of provider: http://edirc.repec.org/data/talouea.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.