Estimation of the degree of market inefficiency in place and show betting at the racetrack

William E. Stein, Philip Mizzi

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Ziemba and Hausch have studied place and show betting at the racetrack and shown the occasional presence of positive expectation wagers. The technique uses information present at the racetrack (the amounts bet to win, place, and show on each horse) but not otherwise available. This paper examines data on past races and derives bounds on the percentages bet to win, place, and show for each of the first three finishing horses. Bounds on the estimated expected profit of Ziemba and Hausch (prior to the race) for a given bet is obtained. An example of the procedure is provided using past race results.

Original languageEnglish (US)
Pages (from-to)55-63
Number of pages9
JournalMathematical and Computer Modelling
Volume15
Issue number9
StatePublished - 1991

Fingerprint

Information use
Profitability
Profit
Percentage
Market
Betting
Market inefficiency

ASJC Scopus subject areas

  • Modeling and Simulation
  • Computational Mathematics
  • Applied Mathematics
  • Control and Systems Engineering
  • Information Systems and Management
  • Computer Science (miscellaneous)

Cite this

Estimation of the degree of market inefficiency in place and show betting at the racetrack. / Stein, William E.; Mizzi, Philip.

In: Mathematical and Computer Modelling, Vol. 15, No. 9, 1991, p. 55-63.

Research output: Contribution to journalArticle

@article{01863138bd5f408480c811f1615bb6c7,
title = "Estimation of the degree of market inefficiency in place and show betting at the racetrack",
abstract = "Ziemba and Hausch have studied place and show betting at the racetrack and shown the occasional presence of positive expectation wagers. The technique uses information present at the racetrack (the amounts bet to win, place, and show on each horse) but not otherwise available. This paper examines data on past races and derives bounds on the percentages bet to win, place, and show for each of the first three finishing horses. Bounds on the estimated expected profit of Ziemba and Hausch (prior to the race) for a given bet is obtained. An example of the procedure is provided using past race results.",
author = "Stein, {William E.} and Philip Mizzi",
year = "1991",
language = "English (US)",
volume = "15",
pages = "55--63",
journal = "Mathematical and Computer Modelling",
issn = "0895-7177",
publisher = "Elsevier Limited",
number = "9",

}

TY - JOUR

T1 - Estimation of the degree of market inefficiency in place and show betting at the racetrack

AU - Stein, William E.

AU - Mizzi, Philip

PY - 1991

Y1 - 1991

N2 - Ziemba and Hausch have studied place and show betting at the racetrack and shown the occasional presence of positive expectation wagers. The technique uses information present at the racetrack (the amounts bet to win, place, and show on each horse) but not otherwise available. This paper examines data on past races and derives bounds on the percentages bet to win, place, and show for each of the first three finishing horses. Bounds on the estimated expected profit of Ziemba and Hausch (prior to the race) for a given bet is obtained. An example of the procedure is provided using past race results.

AB - Ziemba and Hausch have studied place and show betting at the racetrack and shown the occasional presence of positive expectation wagers. The technique uses information present at the racetrack (the amounts bet to win, place, and show on each horse) but not otherwise available. This paper examines data on past races and derives bounds on the percentages bet to win, place, and show for each of the first three finishing horses. Bounds on the estimated expected profit of Ziemba and Hausch (prior to the race) for a given bet is obtained. An example of the procedure is provided using past race results.

UR - http://www.scopus.com/inward/record.url?scp=0345292982&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0345292982&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:0345292982

VL - 15

SP - 55

EP - 63

JO - Mathematical and Computer Modelling

JF - Mathematical and Computer Modelling

SN - 0895-7177

IS - 9

ER -