Price setting and competition in fixed odds betting markets

Che, Xiaogang; Feddersen, Arne; Humphreys, Brad R.

doi:10.4337/9781785364556.00009

Cited by 6 publications

(7 citation statements)

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“…This contirbution builds upon existing literature to discuss the overround in the betting market and how it has fallen over time. It extends previous research by Che et al (2017) by looking at betting on matches in different leagues over a longer time. Even though the result is not surprising as competition and technology should drive prices in these betting markets down overtime, the study does illustrate by how much and how quickly this has occurred, which is an important insight.…”

Section: The Betting Market Over Time: Overround and Surebets In Eurosupporting

confidence: 69%

Introduction - Gambling economics and management: some insights into recent developments in gambling-related research

Pérez

2018

Econ Bus Lett

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There are several arguments why the economic and management analysis of gambling seems to be very interesting. Gambling is a relevant worldwide market from which either local or national governments obtain resources due to some sort of fiscal imposition on gambling participation. On the other hand, gambling is also a social phenomenon with potential risks to society and the consumption of gambling seems to violate the premises of economic theory (risk aversion, maximizing and rational conduct). The aim of this special issue is to provide an outlet for recent developments in gambling-related research encompassing topics on sports betting, responsible gambling, lottery markets and online gambling, among others.

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Section: The Betting Market Over Time: Overround and Surebets In Eurosupporting

confidence: 69%

Introduction - Gambling economics and management: some insights into recent developments in gambling-related research

Pérez

2018

Econ Bus Lett

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“…TREND: This is a linear variable for the time trend of betting firms’ prices. It is meant to capture the drop in margins across the betting industry as a result of increasing competition during recent years 7 (Che et al, 2017; Gomez-Gonzalez & del Corral, 2018).…”

Section: Research Methods and Resultsmentioning

confidence: 99%

“…For bettors, there has been a reduction in searching costs on the prices offered by the different bookmakers, which means a reduction in transaction costs. For the bookmakers, the level of competition increases as a consequence of these lower searching costs and for the organization of the market, the traditional markets of "bookmakers" coexist with the new "betting exchanges" (Flepp, Nüesch & Franck, 2017;Che, Feddersen & Humphreys, 2017;Gomez-Gonzalez & del Corral, 2018).…”

Section: -Theoretical Background and Hypothesismentioning

confidence: 99%

Does The Betting Industry Price Gender? Evidence from Professional Tennis

Barrutiabengoa¹,

Corredor

Muga

2021

Journal of Sports Economics

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This research addresses the importance of gender in the pricing process of the sports betting industry. Specifically, we investigate the impact of gender in the prices that bookmakers offer for tennis matches. Despite widespread evidence of gender bias both in the practice of the sport and its media coverage, tennis is one of the sports that has done most to achieve equality. The analysis of 51,881 tennis matches reveals that betting firms quote higher prices for women's matches than for men's, even when considering uncertainty due to the surprise factor and the media attention. The separate analysis of two bookmakers strengthens the evidence for the role of media attention as a source of gender-related information asymmetry.

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“…As argued in the ''Introduction" section (and as shown by Anguita et al, 2017;Che et al, 2017;Gomez-Gonzalez & del Corral, 2018), bookmakers' margins decreased over time. In all leagues covered, average margins halved from more than 10% at the start of our observation period to about 5% in recent years, while systematic differences between leagues can be observed.…”

Section: Market Development During the Observation Periodmentioning

confidence: 90%

Are Betting Markets Inefficient? Evidence From Simulations and Real Data

Winkelmann,

Ötting,

Deutscher

et al. 2023

Journal of Sports Economics

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Previous literature leaves the impression that betting market inefficiencies are widespread. However, most studies rely upon limited data and ignore biases’ persistence. Our simulation-based analyses show (1) the impact of low sample sizes on the chance to detect markets that only appear to be efficient and (2) the frequency of observing inefficient periods within fully efficient markets. Afterwards, we (3) empirically analyze real-world football betting markets for 14 consecutive seasons. While inefficiencies occur in singular seasons, they are not persistent or systematic across leagues. Moreover, our simulation-based analyses suggest that statistically significant effects in single seasons are likely to be observed even under full market efficiency.

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Price setting and competition in fixed odds betting markets

Cited by 6 publications

References 0 publications

Introduction - Gambling economics and management: some insights into recent developments in gambling-related research

Introduction - Gambling economics and management: some insights into recent developments in gambling-related research

Does The Betting Industry Price Gender? Evidence from Professional Tennis

Are Betting Markets Inefficient? Evidence From Simulations and Real Data

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