We document an apparently widespread violation of dominance in the horseracing betting market in the United Kingdom, and use the systematic variation in the incidence of this violation to estimate the consumption value of gambling. Gamblers in the UK face a tax on gambling of 10%, but have the...

We analyze the impact that transaction costs have on asset mispricing in state-contingent claims markets. In particular, we examine betting markets, in which, it has been argued, transaction costs cause the favorite-longshot bias, a pricing anomaly analogous to the volatility smile in options...

Finding what causes pricing anomalies is an important step towards improving market efficiency. The favourite-longshot bias is one of the longest-standing pricing anomalies in state-contingent claims markets. However, existing models are unable to capture its full complexity. We develop a...

This paper examines empirically the impact of complexity on levels of participation and performance in decision-making under uncertainty. The setting for the study is the UK off- course horserace betting market, which is characterised by important ecological advantages over laboratory or...

The comparative decision-making behaviour of men and women has generated considerable attention in the literature, with recurrent issues including comparative performance, propensity to accept risk and confidence in decision-making. This study focuses on these three aspects of comparative...