Favorite-longshot bias in pari-mutuel betting: An evolutionary explanation

Favorite-longshot bias in pari-mutuel betting: An evolutionary explanation

Favorite-longshot bias (FLB) refers to an observed tendency whereby “longshots” are overvalued and favorites are undervalued. We offer an evolutionary explanation for FLB in pari-mutuel betting using a simple market model. A bettor is forced to quit with some probability if his total net gain in one...

Full description

Saved in:
Bibliographic Details
Main Authors: KAJII, Atsushi, WATANABE, Takahiro
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2017
Subjects:
Favorite-longshot bias
Market selection
Competitive evolutionary market
Profit maximization
Risk loving
Economics
Economic Theory
Online Access:https://ink.library.smu.edu.sg/soe_research/2082
https://ink.library.smu.edu.sg/context/soe_research/article/3082/viewcontent/1_s20_S0167268117301221_main.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Singapore Management University
Language: English

Internet

https://ink.library.smu.edu.sg/soe_research/2082
https://ink.library.smu.edu.sg/context/soe_research/article/3082/viewcontent/1_s20_S0167268117301221_main.pdf

Similar Items