IDEAS home Printed from https://ideas.repec.org/h/wsi/wschap/9789814405461_0021.html
   My bibliography  Save this book chapter

Efficiency of Racing, Sports, and Lottery Betting Markets

In: Calendar Anomalies And Arbitrage

Author

Listed:
  • William T. Ziemba

    (Sauder School of Business, UBC, Vancouver, Canada and Mathematical Institute, Oxford University, UK and ICMA Centre, University of Reading, UK)

Abstract

This is a survey of efficiency in racing, sports, and lottery markets. The win market is efficient but exhibits a favorite-longshot bias. The place and show markets, which involve more possible finishes, allow inefficiencies by using the win probabilities. These biases are discussed for U.S. and Hong Kong markets. The Kelly capital growth criterion is useful to implement a model to exploit these inefficiencies. Exotic markets involve even more complex sets of bets. Finally, possible inefficiencies in cross-track betting are discussed. Football and basketball betting markets are largely efficient. Lotteries provide interesting markets with one way to potentially exploit them being the use of unpopular numbers.

Suggested Citation

  • William T. Ziemba, 2012. "Efficiency of Racing, Sports, and Lottery Betting Markets," World Scientific Book Chapters, in: Calendar Anomalies And Arbitrage, chapter 21, pages 463-502, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814405461_0021
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/pdf/10.1142/9789814405461_0021
    Download Restriction: Ebook Access is available upon purchase.
    File URL: https://www.worldscientific.com/doi/abs/10.1142/9789814405461_0021
    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:9789814405461_0021. 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.