This paper examines whether a measure of insider trading in betting markets derived from the Shin (1993) model is significantly related in samples of horse and greyhound races to an alternative, independently derived, indicator of insider activity suggested by Crafts (1985), namely plunges in...

One feature of experimental work is the heterogeneity in risk attitudes and probability distortion displayed by agents. We outline a more general non-expected utility model, which nests the models of Markowitz, and Kahneman and Tversky. The model can generate the standard favourite-longshot bias...

Crafts (1985) suggested that a pronounced shortening of bookmaker odds in horse-race betting markets could indicate the presence of insider traders. This paper uses the Shin (1993) measure of the incidence of insider trading at the beginning of the betting period (opening prices) and at the end...