In this article, we examine the role of per-unit bidding rules on firm-level contractual performance. In particular, we test the hypothesis that buyers will act on incentives to under-perform when bids are accepted in per-unit form. The empirical application uses data from per-unit auction sales...

The Harville formula provides an analytical basis for the arbitrage pricing relationship between the odds on 'win' bets and the odds on 'quinella' bets in parimutuel betting markets. This study employs this relationship and high frequency time series data on the evolution of the betting odds...

We examine a sample of 300 movies that appeared on the top-10 charts in Hong Kong. We apply an empirical test proposed by Ijiri and Simon (1974) and find that movie revenues in the territory of Hong Kong are consistent with the hypothesis of increasing returns to information. This empirical...

In this research the effect of breakage—the rounding down of payoffs to winning bets—on the measured efficiency of racetrack betting markets is examined empirically. Over twenty thousand horse races are analysed and it is demonstrated that evidence of betting market inefficiency is...

The lifetime of a motion picture is the margin through which supply adjusts to market demand due to demand-invariant admission prices and fixed seating capacity. The lifetimes of a sample of 493 motion pictures that were exhibited at cinemas in Hong Kong during 1994-1996 are examined. It is...

“Black markets” represent an extreme challenge to empirical researchers due to the almost insurmountable obstacle of obtaining high-quality data. The dearth of high-precision data precludes not only empirical analysis—including the quantification of various elasticities—but also the...

This research examines empirically the effect using broken odds - the rounded off odds reported by horse track operators - on statistical tests of market efficiency in parimutuel gambling. It finds that using rounded-off odds to test for market efficiency, instead of using the exact values,...

A market is analysed in which demand is a stochastic process and supply is contingent on the expected level of demand - a model that provides a realistic depiction of the motion picture market where consumer demand is a process of discovery and information sharing, and the supply of theatre...