McAlvanah, Patrick; Moul, Charles C. - In: Journal of Economic Behavior & Organization 90 (2013) C, pp. 87-99
We examine Australian horseracing bookmakers’ responses to late scratches, instances in which a horse is abruptly withdrawn after betting has commenced. Our observed bookies exhibit anchoring on the original odds and fail to re-adjust odds fully on the remaining horses after a scratch, thereby...