Microestructura y formación de precios en mercados financieros y de apuestas deportivas

Date

2015

Authors

Elizalde Lallana, Amaiur

Publisher

Acceso abierto / Sarbide irekia
Trabajo Fin de Grado / Gradu Amaierako Lana

Project identifier

Abstract

In this study, a parallelism between the Financial Markets and Betting Markets has been done, finding similarities between them, in terms of pricing. In a “price-driven market”, there is a Market Maker who sets the prices for buying and selling assets and in the same way, the Bookmaker executes this function by setting odds on the Betting Market. In the case of financial “order-driven market” and the Betting Exchange, the price is set by continuous supply and demand from the agents. Within the Betting Market, it has been done the study of the “Favourite-Longshot Bias”, which has been studied many times, in Bookmakers market. For this work, we have taken into account the work done by Lahvička (2014), for a tennis Betting Market. This author finds that the existence of this bias is because of the way that prices are set and therefore, because of the market type. We want to test if the same happen in an “order-driven market”. In conclusion, we have confirmed the results of Lahvička, saying that the existence of bias is because of the way that prices are set and therefore, because of the market type.

Description

Keywords

Betting market, Market maker, Favourite-longshot bias, Bookmaker, Betting exchange

Department

Faculty/School

Facultad de Ciencias Económicas y Empresariales / Ekonomia eta Enpresa Zientzien Fakultatea

Degree

Graduado o Graduada en Administración y Dirección de Empresas por la Universidad Pública de Navarra, Enpresen Administrazio eta Zuzendaritzan Graduatua Nafarroako Unibertsitate Publikoan

Doctorate program

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