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A BETTING MARKET: Description and a theoretical explanation of bets in Pelota Matches

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In Pelota matches, bets are made between viewers through a middleman who receives 16% of the finally paid amount. In this paper a description of the way bets are made and an explanation of the existence of those markets is presented. Taking betting markets as a simplified analogy for financial markets we have searched for the explanation in a world where both sides of the market are not different in believes and preferences. Taking observations from actually made bets a preliminary analysis about the biases of those markets is presented.

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  • Loreto Llorente & Josemari Aizpurua, 2006. "A BETTING MARKET: Description and a theoretical explanation of bets in Pelota Matches," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0603, Departamento de Economía - Universidad Pública de Navarra.
    • Handle: RePEc:nav:ecupna:0603
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    Cited by:

    1. Loreto Llorente, 2006. "A Profitable Strategy in the Pelota Betting Market," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0606, Departamento de Economía - Universidad Pública de Navarra.
    2. Loreto Llorente, 2006. "Rank Dependent Expected Utility in the Pelota Betting System: an Experiment," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0604, Departamento de Economía - Universidad Pública de Navarra.

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