The Link Between Information and the Favorite-longshot Bias in Pari-mutuel Wagering Markets

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Published: Jan 2, 2013
DOI: https://doi.org/10.5750/jgbe.v2i1.523
Keywords:
Favorite-longshot bias market restrictions wagering markets

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Andy Weinbach

Abstract

This paper examines a database of more than 45,000 greyhound races over an eight year period at Dairyland Greyhound Park to test for and examine the nature of the favorite-longshot bias.  While the longest odds dogs are collectively found to be over-bet for the sample as a whole, the bias is found to diminish after the introduction of Off-Track Betting.  Further, maiden races, among inexperienced dogs, are shown to exhibit the traditional favorite-longshot bias, while non-maiden races do not.  These results may help explain why researchers have found the bias at some tracks, but not others.

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Vol. 2 No. 1 (2008)
Section
Articles

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