The concept of information efficiency is central to many studies of financial markets, and these studies have been well surveyed to date. A betting market is an example of a simple financial market, but one which offers researchers the added advantage that it is characterized by a well-defined...

Although trading in securities in conventional financial markets on the basis of inside information is restricted by law, the rules against such trading in better markets are rather more ambiguous. It is argued in this paper that, since insider trading in betting markets imposes a cost on the...