Chapter 7: Examining Explanations of a Market Anomaly: Preferences or Perceptions?
3 WHAT CAUSES THE FAVORITE-LONGSHOT BIAS AT THE RACETRACK?
4 IS IT RISK OR INFORMATION?
5 CAN THE MODEL EXPLAIN THE BIASES IN OTHER MARKETS?
Its basic empirical research and investigation of pure theories of investment in the sports and lottery markets make this volume a winner. These markets are simpler to study than traditional financial markets, and their expected values and outcomes are uncomplicated. By means of new overviews of scholarship on the industry side of racetrack and other betting markets to betting exchanges and market efficiencies, contributors consider a variety of sports in countries around the world. The result is not only superior information about market forecasting, but macro- and micro-analyses that are relevant to other markets.