Is timing everything in horse betting? Bet amount, timing and bettors' returns in pari-mutuel wagering markets

Suhonen, Niko, Saastamoinen, Jani, Kainulainen, Tuomo and Forrest, DK ORCID: 0000-0003-0565-3396 (2018) Is timing everything in horse betting? Bet amount, timing and bettors' returns in pari-mutuel wagering markets. Economics Letters, 173. pp. 97-99.

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Abstract

Noise trader models suggest that ‘smart money’ profits from uninformed speculators. This paper investigates how rates of return are associated with the timing of a bet and the amount staked in a pari-mutuel horse betting market. We employ a novel data set measured at the level of individual bettors on the Finnish monopoly operator’s online platform. Our findings suggest that, relative to other bets, late high-stakes wagers are more profitable. This implies that, along with timing, bet sizes should be accounted for when analysing market efficiency.

Item Type:	Article
Uncontrolled Keywords:	Bet size
Depositing User:	Symplectic Admin
Date Deposited:	27 Sep 2018 08:37
Last Modified:	19 Jan 2023 01:16
DOI:	10.1016/j.econlet.2018.09.021
Related URLs:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3026782