Hidden power of trading activity: the FLB in tennis betting exchanges
| dc.contributor.author | Abinzano Guillén, María Isabel | |
| dc.contributor.author | Muga Caperos, Luis Fernando | |
| dc.contributor.author | Santamaría Aquilué, Rafael | |
| dc.contributor.department | Institute for Advanced Research in Business and Economics - INARBE | en |
| dc.date.accessioned | 2017-10-04T09:44:10Z | |
| dc.date.available | 2017-10-04T09:44:10Z | |
| dc.date.issued | 2017 | |
| dc.description.abstract | This paper examines the impact of trading activity on the Favourite-Longshot Bias (FLB) in tennis Betting Exchanges, using direct measures such as betting volume, average bet and standard deviation of the odds. According to predictions based on Disagreement Models, odds mispricing is positively associated with trading volume but negatively associated with the presence of institutional bettors. The FLB is also positively related to the degree of uncertainty in the market. The existence of two simultaneous markets (a “main” and an “alternative” market) in this specific sports-betting environment has enabled us to observe that the relative amount of attention given to the favourite versus that given to the long shot is positively associated with the FLB. Finally, information is more rapidly incorporated into the odds in the market that receives more attention from bettors, an effect that is intensified by the arbitrage and hedging that occurs between the two markets. | en |
| dc.description.sponsorship | Financial support from the Spanish Ministry of Economy and Competitiveness, Project ECO2016-77631-R and Fundación Caja Navarra FUNCAN-07445 are gratefully acknowledged. | en |
| dc.format.mimetype | application/pdf | en |
| dc.identifier.doi | 10.1177/1527002517731875 | |
| dc.identifier.issn | 1527-0025 (Print) | |
| dc.identifier.issn | 1552-7794 (Electronic) | |
| dc.identifier.uri | https://academica-e.unavarra.es/handle/2454/25857 | |
| dc.language.iso | eng | en |
| dc.publisher | SAGE Publications | en |
| dc.relation.ispartof | Journal of Sports Economics. First published date: September-22-2017. | en |
| dc.relation.projectID | info:eu-repo/grantAgreement/ES/1PE/ECO2016-77631/ | |
| dc.relation.publisherversion | https://doi.org/10.1177/1527002517731875 | |
| dc.rights | © Los autores | es_ES |
| dc.rights.accessRights | info:eu-repo/semantics/openAccess | |
| dc.subject | Betting exchanges | en |
| dc.subject | Trading activity | en |
| dc.subject | Favourite-longshot bias | en |
| dc.subject | Behavioral finance | en |
| dc.title | Hidden power of trading activity: the FLB in tennis betting exchanges | en |
| dc.type | info:eu-repo/semantics/article | |
| dc.type.version | info:eu-repo/semantics/acceptedVersion | |
| dspace.entity.type | Publication | |
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