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Place returns between the tote and bookmakers: empirical evidence of a market anomaly

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  • D. Law
  • D. A. Peel
  • M. Cain

Abstract

This letter examines the relationship between returns to win and place betting between the tote and bookmakers when explicit allowance is made for the degree of insider trading employing the Shin measure. The results are not readily reconcilable with market efficiency.

Suggested Citation

  • D. Law & D. A. Peel & M. Cain, 1999. "Place returns between the tote and bookmakers: empirical evidence of a market anomaly," Applied Economics Letters, Taylor & Francis Journals, vol. 6(12), pages 789-792.
    • Handle: RePEc:taf:apeclt:v:6:y:1999:i:12:p:789-792
    DOI: 10.1080/135048599352178
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    References listed on IDEAS

    as
    1. Shin, Hyun Song, 1991. "Optimal Betting Odds against Insider Traders," Economic Journal, Royal Economic Society, vol. 101(408), pages 1179-1185, September.
    2. Shin, Hyun Song, 1993. "Measuring the Incidence of Insider Trading in a Market for State-Contingent Claims," Economic Journal, Royal Economic Society, vol. 103(420), pages 1141-1153, September.
    3. Gabriel, Paul E & Marsden, James R, 1990. "An Examination of Market Efficiency in British Racetrack Betting," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 874-885, August.
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