IDEAS home Printed from https://ideas.repec.org/p/nav/ecupna/0606.html
   My bibliography  Save this paper

A Profitable Strategy in the Pelota Betting Market

Author

Listed:

Abstract

In Pelota matches, games with two mutually exclusive and exhaustive outcomes, bets on the winner are made between viewers through a middleman who receives 16% of the finally paid amount. In this paper after the description of the way bets are made in the market we analyze what we call the general odds rule. Analyzing the way odds are fixed in the market we find that assuming equal return on bets there are biases in the market. Moreover, we find profitable betting strategies even taking commissions into account.

Suggested Citation

  • 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.
  • Handle: RePEc:nav:ecupna:0606
    as

    Download full text from publisher

    File URL: ftp://ftp.econ.unavarra.es/pub/DocumentosTrab/DT0606.PDF
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    2. Dowie, Jack A, 1976. "On the Efficiency and Equity of Betting Markets," Economica, London School of Economics and Political Science, vol. 43(17), pages 139-150, May.
    3. Woodland, Linda M & Woodland, Bill M, 1994. " Market Efficiency and the Favorite-Longshot Bias: The Baseball Betting Market," Journal of Finance, American Finance Association, vol. 49(1), pages 269-279, March.
    4. Williams, Leighton Vaughan & Paton, David, 1997. "Why Is There a Favourite-Longshot Bias in British Racetrack Betting Markets?," Economic Journal, Royal Economic Society, vol. 107(440), pages 150-158, January.
    5. Michael A. Smith & David Paton & Leighton Vaughan Williams, 2006. "Market Efficiency in Person-to-Person Betting," Economica, London School of Economics and Political Science, vol. 73(292), pages 673-689, November.
    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:nav:ecupna:0606. 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: (Javier Puértolas) or (Joanne Lustig). General contact details of provider: http://www.econ.unavarra.es .

    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.