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Place returns between the tote and bookmakers: empirical evidence of a market anomaly

Law, D.; Peel, D. A.; Cain, M. - In: Applied Economics Letters 6 (1999) 12, pp. 789-792

This letter examines the relationship between returns to win and place betting between the tote and bookmakers when explicit allowance is made for the degree of insider trading employing the Shin measure. The results are not readily reconcilable with market efficiency.

Persistent link: https://www.econbiz.de/10009207742

Skewness as an explanation of gambling by locally risk averse agents

Cain, M.; Peel, D.; Law, D. - In: Applied Economics Letters 9 (2002) 15, pp. 1025-1028

Within the expected utility framework skewness of return has been suggested as a rationale for why risk averse gamblers might choose to gamble when expected returns are negative. The argument is that risk-averse agents desire positive skewness, ceteris paribus, and are prepared to trade off a...

Persistent link: https://www.econbiz.de/10009189310

Market movers and tote and bookmakers returns: further empirical evidence on a market anomaly

Peel, D. A.; Law, D.; Cain, M. - In: Applied Economics Letters 6 (1999) 12, pp. 801-804

This letter provides empiricial evidence on the impact of market movements in odds between opening and closing prices on relative tote and bookmaker returns when explicit allowence is made for insider trading. The results support an asymetric impact and are not readily reconcilable with market...

Persistent link: https://www.econbiz.de/10009195798

Wagner's Law and public expenditure in Iraq: a test using disaggregated data

Asseery, A. A.; Law, D.; Perdikis, N. - In: Applied Economics Letters 6 (1999) 1, pp. 39-44

Recent developments in time series analysis have encouraged economists to re-examine the validity of Wagner's Law. Recent econometric tests have shown mixed results with some upholding the hypothesis while others contradict it. Carrying out econometric work with aggregated data could account for...

Persistent link: https://www.econbiz.de/10005629270

Some analysis of the properties of the Harville place formulae when allowance is made for the favourite-long shot bias employing Shin Win probabilities

Cain, M.; Law, D.; Peel, D. A. - In: Applied Economics Letters 10 (2003) 1, pp. 53-57

Persistent link: https://www.econbiz.de/10005435247

Gambling and nonexpected utility: the perils of the power function

Law, D.; Peel, D. A. - In: Applied Economics Letters 14 (2007) 2, pp. 79-82

The use of the power utility function is problematic in expected utility theory. We show that, this is also the case in cumulative prospect theory, where the power function violates the assumption of loss-aversion at small stake levels, so that an optimal model of gambling is precluded. In the...

Persistent link: https://www.econbiz.de/10005435319

Estimates of the degree of insider trading in two disparate betting markets

Cain, Michael; Law, David; Peel, David - In: Applied Economics Letters 6 (1999) 3, pp. 191-193

Conditional on the Shin (Economic Journal, 103, 1993) model, the incidence of insider trading is estimated in two different British betting markets: those for horse-racing and the 1997 general election. Formal testing confirms that insider trading is significantly lower in handicap than...

Persistent link: https://www.econbiz.de/10009207773

On skewness of return and buying more than one ticket in a lottery

Peel, David; Law, David - In: Applied Economics Letters 16 (2009) 10, pp. 1029-1032

The purpose in this article is to demonstrate that buying more than one ticket in a lottery is readily explicable in models of utility that permit gambling at actuarially unfair odds. However, contrary to popular view, we show this choice cannot be explained in terms of a variance-skew trade-off.

Persistent link: https://www.econbiz.de/10004966436