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...

P<sc>aton</sc> D. and V<sc>aughan</sc> W<sc>illiams</sc> L. Do new gambling products displace old? Evidence from a postcode analysis. <italic>Regional Studies</italic>. This paper examines the extent to which new gambling products displace traditional products. In particular, it tests whether the introduction of fixed-odds betting...

Most studies of both pari-mutuel and fixed-odds betting markets have shown a systematic tendency for the expected return to bets at lower odds to exceed those at higher odds. Some work, however, has revealed in certain markets the absence or even reversal of this bias. We present a model which...

This paper shows how an economic approach might be used to provide corroborating evidence to aid investigations into irregularities in price setting in a defined financial market. Evidence on price movements in betting markets is used to suggest an economic framework within which price...

This paper investigates the reason why expected returns to identical bets placed at different odds vary significantly and systematically from one another. It is hypothesized that the cause is the existence for bettors of positive transactions costs. Two different arenas, fixed odds and spread...

Bookmakers have argued that person-to-person internet 'betting exchanges' represent unfair competition. In this paper we suggest that, in fact, betting exchanges have brought about significant efficiency gains by lowering transaction costs for consumers. We test this hypothesis using matched...

In October 2001, the U.K. government implemented a dramatic shift in the taxation of gambling, resulting in a substantial decline in taxes levied on U.K. bookmakers. Using data before and after this event, we present econometric evidence on the demand response to this tax reduction. Our results...