Late Money and Betting Market Efficiency: Evidence from Australia

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Published: Oct 28, 2016
DOI: https://doi.org/10.5750/jgbe.v10i2.1246

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Marshall Gramm
C. Nicholas McKinney
Department of Economics, Rhodes College, 2000 North Parkway, Memphis, TN 38112
Randall E. Parker
Department of Economics, East Carolina University, Brewster A-422, Greenville, NC 27858

Abstract

 This paper examines the empirical importance of late money on market efficiency in horse race gambling. Our inquiry into the effect of late money on parimutuel pools uses data from Australian thoroughbred horse races over the entire 2006 racing season and includes every race at all thoroughbred tracks. This amounts to 14,854 races with an average of 10.37 starters per race. The evidence overwhelmingly supports the hypotheses that late money is smart money and late money improves market efficiency.

Article Details

Issue
Vol. 10 No. 2 (2016)
Section
Articles

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