The paper investigates income elasticity of demand for online horserace betting, using individual account data and administrative data from Finland. Overall income elasticity is positive but low. However, elasticity varies substantially across the income distribution from near-zero at the bottom...

The possibility to use hedging strategies is an often neglected aspect in the literature on prediction/betting markets, as most papers assume that bettors will bet according to their beliefs about the probability of the outcome of the event, as opposed to the direction in which the odds will...