The Relationship between Two Indicators of Insider Trading in British Racetrack Betting.

This paper examines whether a measure of insider trading in betting markets derived from the Shin (1993) model is significantly related in samples of horse and greyhound races to an alternative, independently derived, indicator of insider activity suggested by Crafts (1985), namely plunges in the odds offered against a particular competitor on the day of a race. The analysis suggests that there is a significant relationship. Copyright 2001 by The London School of Economics and Political Science