Even though betting exchanges are considered to be the superior business model in the betting industry due to less operational risk and lower information costs, bookmakers continue to be successful. We explain the puzzling coexistence of these two market structures with the advantage of...

This paper examines how liquidity affects market efficiency in a market environment where securities' true values are revealed at a predetermined point in time. We employ differences in minimum tick sizes at the betting exchange Betfair as a source of exogenous variation in liquidity. The...

Using representative and geocoded data from the Swiss Household Panel (SHP) and the Swiss Business Census, we estimate the effect of sports activity on health. OLS models show that sports activity significantly decreases overweight, sleeping problems, headaches, back problems, and perceived...

There is a well-established body of literature on separately testing the prediction power of different betting market settings. This paper provides an inter-market comparison of the forecasting accuracy of bookmakers and a major betting exchange. Employing a dataset covering all football matches...

Theory predicts that the interaction type within a team moderates the impact of talent disparity on team productivity. Using panel data from professional German soccer teams, we test talent composition effects at different team levels characterized by different interaction types. At the match...