We document an apparently widespread violation of dominance in the horse-racing betting market in the UK, and use the systematic variation in the incidence of this violation to estimate the consumption value of gambling. Betting-shop gamblers in the UK face a tax on gambling of 10%, but have the...

This short paper offers a critical appraisal of a recent contribution to the debate on efficiency in the particular context of horserace betting markets. A number of specific criticisms are detailed. These include the failure of the authors to capture inefficiency signals which relate to...

This paper offers new insights into the behavioural origins of the favourite-longshot bias - an established feature of betting markets, whereby longshots win less often than the subjective probabilities imply and favourites more often. A number of alternative explanations has been offered for...

In recent years leading figures in a variety of fields - political, financial, medical, and organizational - have become acutely aware of the need to effectively incorporate aspects of risk into their decision-making. This book addresses a wide range of contemporary issues in decision research,...

The stock market capitalization (SMC) of a country, defined as the aggregated market value equity of companies in the respective equity market, is commonly used to measure the widening and deepening of stock market activity. SMC also influences economic growth predictions and public consensus...

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...

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...

This paper explores the extent to which decision makers in a naturalistic environment, the Hong Kong horserace betting market, anchor their probability judgments on highly visible information and make insufficient adjustments in the light of additional data. Linear regression and conditional...