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.
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U2 - 10.1016/0895-7177(91)90005-R
DO - 10.1016/0895-7177(91)90005-R
M3 - Article
AN - SCOPUS:0345292982
SN - 0895-7177
VL - 15
SP - 55
EP - 63
JO - Mathematical and Computer Modelling
JF - Mathematical and Computer Modelling
IS - 9
ER -